Manolo Blahnik experiences a 30% drop in pre-tax profits in 2023 amid luxury spending downturn.
- The company’s turnover decreased by 10% year-on-year to €106.5m (£91m).
- Strategic investments are ongoing despite challenging macro-economic conditions.
- Expansion plans include new stores in Asia, North America, and Europe by 2025.
- CEO Kristina Blahnik remains optimistic about future growth potential.
In 2023, the renowned luxury footwear and accessories brand Manolo Blahnik reported a significant 30% decrease in pre-tax profits, amounting to €15.4 million (£13.1 million). This decline is largely attributed to the overall downturn in luxury spending, impacting the brand’s financial performance. Despite this setback, the company asserts that the results align with their expectations and represent their second-best performance year to date.
The company’s group turnover was recorded at €106.5 million (£91 million), reflecting a 10% reduction from the previous year. Manolo Blahnik attributes this decrease to macro-economic and geopolitical headwinds, which have necessitated a careful management of costs. The brand remains committed to progressing its global strategic investment plans, anticipating a rebound in consumer confidence by 2025.
In a move to strengthen its operational base, Manolo Blahnik acquired its UK global headquarters located on Old Burlington Street in Mayfair in September 2023. This new 14,500-square-foot office includes a state-of-the-art showroom, underlining the company’s commitment to enhancing its infrastructure.
The brand is actively expanding its footprint in Asia with plans to inaugurate three stores in Hong Kong and its debut mainland China store in Shanghai within the year. Further expansion is envisaged for North America and Europe, with flagship stores slated to open in Miami Design District and Milan by early 2025.
CEO Kristina Blahnik expressed that despite the challenging economic environment, the year 2023 marked significant strategic progress for the company. The investment in teams, infrastructures, and the new London head office positions the brand well for growth once the luxury market recovers. Her optimism indicates confidence in the brand’s ability to navigate current challenges and capitalise on future opportunities.
The strategic investments and expansion efforts position Manolo Blahnik well for future growth amid current economic challenges.
