Kurt Geiger increased sales by nearly 10% last year as the footwear and handbag retailer said it benefited from fashion fans switching to its more affordable luxuries during the cost of living crisis. The company said its revenues had risen by 9.4% in the year to the end of January 2024.
Sales of handbags boomed after it cut prices by 5% compared with three years ago, just as many luxury brands had upped price tags. The British retailer’s revenues were also helped by its expansion in the US, where Kurt Geiger is now sported by the likes of Kylie Jenner, Jennifer Lopez and Paris Hilton. Its sales have risen despite a tough time for the wider clothing and footwear market, particularly for luxury brands, as household income has been squeezed by the cost of living crisis.
Neil Clifford, the chief executive of Kurt Geiger, said underlying profits rose 34% to £40.4m on sales of nearly £361m – putting the group back on a par with its pre-Covid performance – and he expects further growth in this financial year. He said: “The strategy of increasing prices when consumers were having a tough time to take the same sales from fewer people, I don’t think that has worked [for others].
We have put a lot of effort and creativity into our product but are at a price point that is lower than all our competitors and I think that is working.” Clifford said fashion items had to be more affordable as they were now facing increased competition from other options – such as travel, even.