Kurt Geiger sales surge, bags and US growth are key; new academy unveiled

Kurt Geiger had big news on Monday with the shoes-to-bags retailer announcing its “most profitable month in the history of the company demonstrating an all-time record for Christmas trading, globally”, plus explosive growth in North America and bags becoming its biggest category.

The company, which also owns Carvela and operates department store shoe concessions, said it would inject over £1 million into its foundation to establish ‘Business By Design’. This is a new “in-house academy providing education and opportunities for under-represented young people”.

First the business news. The company reported a double-digit December sales rise and particularly strong sales in North America, as well as further growth for its handbags business.

December was the “most profitable month” in its history with total group sales last month up 15% year on year to £45 million. While the UK market was weak for the fashion sector in general, Kurt Geiger’s UK store sales rose 12% and digital sales increased by 45% — both driven by demand for handbags and accessories.

For the financial year ended 28 January 2023 Kurt Geiger had earlier reported a 31% increase in group turnover to £329.5 million and a 49% increase in EBITDA to £30 million. The US saw sales increasing 171% in that year and overall handbag sales rose to a record £91.6 million in the period.

And its bags growth has clearly continued since then. In fact, handbags are now such an important part of the business that it’s no longer accurate to call it a shoe retailer that also sells bags. It’s a fully-fledged footwear and accessories specialist and one of the fastest growing accessories brands in North America. Handbags have been a huge driver for that growth internationally but especially in the US where they’re now its best-selling category. In the UK the category represents 50% of Kurt Geiger’s sales too.

It’s now a key name in accessible luxury bags — the average price of its leather bags is £250 in a market where luxury bag prices have for some time been at eye-watering four-figure prices.

The company also said that its average prices and the recent increased bag spend reflects “the launch of new larger shapes and sizes within its handbag range – with much more development coming for 2024”.

North America growth

It’s also been helped by celebrity endorsement for the main Kurt Geiger London brand with Kylie Jenner, Julia Roberts, Jennifer Lopez, Viola Davis, Eva Longoria, Paris Hilton and Afiya Bennett all seen wearing/carrying the brand.

And as that list of American names suggests, as mentioned earlier, the US business is growing fast. The company called the US “exceptionally strong” and said it’s now its largest market even though it entered North America only four years ago.

That regional business has also been boosted by the “successful opening” of Kurt Geiger stores in Mexico, with plans to open five additional US stores this year as well.

Not that domestic market stores are being neglected and the company now has 74 standalone stores in the UK and two in Ireland. It opened eight new UK stores in 2023 including its flagship store on London’s Oxford Street in October. 

New academy

As for that key academy development, the company said the success last year “helped fund a £1 million donation to the Kurt Geiger Kindness Foundation, which looks to remove barriers and give young people, no matter their background, the opportunities, support, and tools to enter the creative industries.”

This week sees the debut of the Business By Design academy, “giving opportunities for young talent from marginalised communities to learn all areas of the Kurt Geiger and creative business, sealed with a certified, AQA-recognised education accreditation”.

It’s a free, seven-month “innovative learning programme”, co-created by young people “to help the next generation unlock their full potential”. 

At launch it includes 22 students aged 18-20 who will “learn directly from the people who built the Kurt Geiger business, giving the cohort access to practical, tangible and fundamental skills”.  

The programme includes “inspirational masterclasses, hands-on skill sessions, and paid work experience in all the core functions of a creative business: Design, Buying, Marketing, Digital, Sales, Finance, Merchandising and Social Media, with mentorship directly from experienced Kurt Geiger team members”.
 

CEO Neil Clifford was justifiably upbeat about the firm’s success, saying: “These results underline Kurt Geiger’s transformation over the last decade from a predominantly UK shoe brand to what it is today; a global accessories brand with a cult following in both the US and UK.

“December’s performance marks a very strong end to what has been a remarkable year. With in-store and digital sales both hitting double-digit growth in the UK and the US, the group is delivering what customers want, namely accessible luxury combined with high-quality, distinctive design.

“Handbags and accessories continue to underpin our robust sales, and combined with a growing celebrity following, we are very well positioned to continue our profitable growth trajectory in 2024.”