Amidst a “challenging macroeconomic and geopolitical environment,” luxury footwear and accessory firm Manolo Blahnik has experienced what CEO Kristina Blahnik described as its “second-best year ever.” This performance aligns with the company’s strategic plan.
Despite all the good news, the brand announced that its group turnover for December 31, 2023, dropped by 10% to 106.5 million euros from 118.2 million euros the year before. The company attributed this decline to the “well-documented global luxury market slowdown” in sales.
The group’s operational profit, which stayed “strong” at 15% of total revenues, was characterized as being more “robust.” In comparison, the profit before tax decreased by 30% to 15.4 million euros from 21.9 million euros, in accordance with the expectations of the group.
The company stated that it would continue to “carefully manage costs while progressing its strategic global investment plans, focused on the anticipated return of consumer confidence in 2025” in view of the current market difficulties.
In light of its aspirations to expand throughout the continent, Manolo Blahnik has used this to solidify its position in a number of areas, including Hong Kong, where it recently formed a joint venture with Asia luxury brand operator Bluebell Group.
The group also stated that it planned to keep growing across North America and Europe, announcing major openings in early 2025, such as flagship locations in Milan and the Miami Design District.
CEO Blahnik went on to say, “We will see a continued readjustment to pre-Covid demand in 2024.” We took the option to build our own distribution channels and consolidate our wholesale network, and we have utilized this time to reorganize both our D2C and B2B models.
“We are in a strong position to grow once consumer confidence recovers thanks to the strategic progress we made in 2023 in developing our plans for global expansion and investing in our teams, infrastructure, and new London Head Office.
“Manolo Blahnik enjoys the luxury of being a stand-alone heritage brand with a long-term, financially secure business plan that allows it to adjust to constantly shifting conditions.”
