Jimmy Choo’s not having much fun at the moment. Its shares have underperformed the wider luxury market by 15% since their late 2014 listing and ahead of its full-year results on Tuesday, brokers are pessimistic.
In January, the company updated on sales saying they’d risen 6%, but the Paris attacks, the Russian contraction and issues in the US are likely to have dented profits, and that’s what counts to investors.
Yet brokers still seem upbeat and the fact that Jimmy Choo hasn’t scratched the surface of the Chinese market yet could be seen as a positive. The fact is that unlike some rivals, it didn’t over-expand there when that market was riding high. And despite the current downturn, China’s potential is still huge.
I’ll be poring over Tuesday’s results because, with the shares currently trading below their original listing price, they might just be a bargain.