Final Results

22 March 2016

Jimmy Choo PLC

Preliminary Results for the year ended 31 December 2015

Continued Strong Performance

Jimmy Choo PLC, the British luxury brand specialising in shoes and accessories, today announces its preliminary results for the year ended 31 December 2015.

Highlights

· Revenue growth of 7.2% on a constant currency basis

· Consolidated Net Income increased £30.2m to reach £19.4m

· Adjusted EBITDA grows 1.5% to £51.0m

· Strong performance, in particular from Asia and Japan

· 13 new Directly Operated Stores (DOS), in addition to the successful conversion of three franchise stores to DOS in Singapore and Malaysia

· Successful roll out of the New Store Concept with a total of 30% of our DOS estate in the New Store Concept at year end

· Successful upgrade of our business systems and transformation of the supply chain

· Cash conversion increased from 92.2% to 96.5%

· Bank leverage reduced from 2.19x to 1.90x despite continued investment

· Refinancing completed with a lower margin, increased headroom and a 5 year tenor

Pierre Denis, CEO of Jimmy Choo PLC said:

"Jimmy Choo made excellent progress in 2015, delivering sustained renovation of the retail portfolio whilst continually evolving the product mix and meeting development targets. Our teams work hard to deliver products of the highest quality and innovation whilst designs led by our Creative Director, Sandra Choi, have been warmly received by clients and critics and are a key factor in the growing global appeal of our brand. We are particularly pleased to report positive Consolidated Net Income of £19.4m compared to a loss of £10.8m last year.

"We approach 2016 sensitive to the many challenges facing the sector. Against this background, our teams continue to work hard to execute our growth strategy, without compromising our brand or its luxury position. We will continuously improve our operating efficiency and manage our costs to deliver margin improvement and good cash generation."

Peter Harf, Chairman of Jimmy Choo PLC commented:

"Jimmy Choo continues to outpace the sector despite the challenging competitive environment. The Company successfully reversed the first half decline in wholesale revenues and remains on track with growth forecasts in Asia and Japan where brand awareness continues to grow strongly. I would like to thank Pierre and his highly talented team for their commitment and diligent hard work in helping to secure this result."

Enquiries

The Company will next update the market on trading at the time of its AGM on 15 June 2016.

1 Constant currency revenue growth is calculated by applying the exchange rates for the year ended 31 December 2015 to the year ended 31 December 2014 on a month by month basis and calculating the growth percentage by reference to the total year.

2 Like-for-like sales growth ("LFL") is calculated by taking retail sales in all locations where trading occurred for a full financial year prior to the start of the period being measured and calculating sales growth for those locations at constant currency.

3 Adjusted EBITDA is defined as operating profit for the year adjusted for exceptional costs, loss on disposal of property, plant and equipment and intangible assets, depreciation and amortisation charges and realised and unrealised foreign exchange gains and losses on the revaluation of monetary items.

4 Adjusted EBIT is defined as operating profit for the year adjusted for exceptional costs, share of the result of associates and joint venture and realised and unrealised foreign exchange gains and losses on the revaluation of monetary items.

5 Adjusted Consolidated Net Income is defined as profit/loss before tax for the period adjusted for exceptional costs, deferred tax, interest on the shareholder credit facility, foreign exchange gains and losses on the revaluation of external bank facilities, changes in the fair value of forward foreign exchange contracts used to manage exposure to foreign currency gains and losses arising external bank facilities.

6 Adjusted EPS is calculated as Adjusted Consolidated Net Income 5 divided by 377,786,469 shares.

Notes to Editors

Jimmy Choo encompasses a complete luxury accessories brand. Women's shoes remain the core of the product offer, alongside handbags, small leather goods, scarves, sunglasses, eyewear, belts, fragrance and men's shoes. CEO Pierre Denis and Creative Director Sandra Choi together share a vision to create one of the world's most treasured luxury brands. Jimmy Choo has a global store network encompassing more than 140 stores and is present in the most prestigious department and specialty stores worldwide. Jimmy Choo PLC is publicly listed on the London Stock Exchange with the ticker CHOO.

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. Jimmy Choo PLC undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. All persons, wherever located, should consult any additional disclosures that Jimmy Choo PLC may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Jimmy Choo PLC shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.

Operational Review

Product Collections

Our focus on shoes and our dedication to product quality ensures that we continue to create innovative products which resonate strongly with our clients around the world.

As a luxury accessories brand, design and quality is at the heart of Jimmy Choo. The products that we design and create are an expression of our DNA and enrich the brand. Our teams work hard to deliver products of the highest quality and innovation. From a design perspective, 2015 was a successful year. Our Creative Director, Sandra Choi, and her team have seen their designs warmly received by clients and critics - a key factor in the growing global appeal of our brand.

The main driver of revenue growth in 2015 was Shoes, which continue to be at the heart of the brand, representing over three quarters of the business. Accessories volumes remained stable, with a trend towards smaller bags. We have also seen excellent growth in the Men's business, now 7% of revenues, reflecting an increase in the number of dual gender stores in the year. During 2015, we also launched the 'Illicit' fragrance and this, along with the continued roll-out of the 'Jimmy Choo Man' fragrance contributed to strong growth in Licence income. We also made excellent progress in both Sunglasses and Eyewear.

We enjoyed a very high profile success during the year with the involvement of Sandra Choi, our Creative Director, in the design of the Jimmy Choo take on the Cinderella shoe. The shoe was famously worn by Lily James to the film's première in Berlin and subsequently featured in selected locations around the world, attracting orders for many hundreds of pairs.

We also had two successful capsule collections during the year. In June 2015, Jimmy Choo announced a limited edition collaboration with Moon Boot®, the Italian iconic winter boots brand, which took the Moon Boot® construction and translated it into a range of sophisticated, ultra-glamorous designs synonymous with the Jimmy Choo name. This followed the launch in May 2015 of the Choo Hound collection which incorporated Brazilian artist Rafael Mantesso's drawings of his English Bull Terrier called Jimmy Choo, in the form of a series of illustrations commissioned by our Creative Director Sandra Choi to decorate a selection of Jimmy Choo accessories.

Distribution

Continued growth in our retail estate was a key driver of retail revenue growth. We opened 13 new DOS in the period and converted a further three franchise stores to DOS in Singapore and Malaysia, giving a total DOS portfolio of 141 at the end of 2015. The focus of our retail expansion continues in Asia, where we remain underpenetrated relative to our luxury peers.

Our New Store Concept continues to outperform and we renovated a total of 15 stores in the year, with 30% of our portfolio now in this new format at the year end.

We are planning a global footprint of flagship stores which are designed to be a fuller expression of the Jimmy Choo brand in key locations around the world. Those in New Bond Street, Sloane Street, Beverly Hills and Harbour City Hong Kong flagship stores are already open. Further stores are planned for New York, Milan, Paris, Tokyo, Shanghai and Beijing. The programme is expected to be completed during 2017.

Our store development programme continues unchanged. We expect to open 10-15 new DOS and to renovate a further 10-15 DOS each year.

Our highly focused strategy in Asia has been successful, with the region continuing to lead growth. Revenue in Asia was driven by continued new store openings in China and the conversion of 3 franchise doors to DOS in Singapore and Malaysia, together with the opening of a new flagship store in Harbour City, Hong Kong.

Our brand awareness continues to grow strongly in both Asia and Japan. We have significant opportunities to maintain this outperformance in the years ahead through our collections, our store development programme and through the development of other channels, including Travel Retail, where we have only limited distribution today.

Digital

At the end of 2015 we had a very strong social media following, including over 18 million YouTube views and now with a total of 3 million Instagram followers, which are our two fastest growing channels. We continue to be recognised for our digital presence, being awarded 'Genius' status by the consultancy L2 for the second year running.

As part of our retail strategy, we have maintained the significant investment in our eCommerce platform, which continues to see strong revenue growth. We introduced our new responsive website in August 2015, designed to capitalise on the growing trend of shopping on mobile devices. This forms part of the preparations which are under way for a progressive launch of Omnichannel in the second half of 2016.

Investment in Systems and Processes

Following investment in SAP and in the eCommerce platform in 2014, we continued with our transformation programme during 2015, with further SAP roll-out and a successful move into our central global distribution centre in Switzerland. The final SAP implementation will take place in Japan during 2016. We expect to launch Ominichannel services progressively during the second semester which is a key project to leverage the system platform investments already made by enhancing product availability, improving inventory management and increasing client engagement.

Revenue Analysis

Our overall revenue increased by 7.2% on a constant currency basis (6.1% on a reported basis), with continued growth across all segments. Retail continues to be the growth engine of the business, growing ahead of wholesale, in line with our stated strategic aim of retail led growth. Retail sales in 2015 represented 65.3% of revenue. Other, which includes licensed income from Fragrance and Eyewear, also performed strongly, growing to 3.3% of total revenue. Revenue was significantly affected by currency volatility in 2015, with EMEA impacted by the weakening of the Euro and the Americas affected by the strengthening of the Dollar, causing significant fluctuations in reported sales both in terms of value and its impact on client shopping patterns.

At a category level, growth was led by Shoes which represents over three quarters of the business. Men's continues to remain our fastest growing category and now accounts for 7% of total revenue.

Retail

In 2015, retail revenue grew by 8.7% on a constant currency basis to £207.7m as a result of the addition of 16 new DOS and like for like sales 1.1% ahead. Reported revenues were 7.7% ahead of last year. Like for like sales continue to be positively impacted by the roll-out of the New Store Concept, with renovated stores continuing to outperform stores in existing formats. During 2015, 15 stores were renovated, bringing the total stores trading in the New Store Concept at the year end to 30% of the DOS estate, including four flagships.

Wholesale

Our wholesale business grew by 1.3% on a constant currency basis during 2015. We continued to see organic growth within existing key wholesale accounts as well as the opening of a further 3 franchise stores and expansion of our wholesale network in EMEA, Asia and the Americas.

Other Revenue

The business enjoyed a very successful year in Licensing, which saw the full year impact of the launch of 'Jimmy Choo Man', our first Men's fragrance launched in the second half of 2014, as well as the launch in August 2015 of 'Illicit', our third Women's fragrance. Both have been very well received from launch and outstripped expectations consistently. Sunglasses and Eyewear also performed well.

Asia continues to be our strongest growth region. Asia ex-Japan grew by 20.1% at constant currency, driven by continued new store openings in China and the conversion of 3 franchise doors to DOS in Singapore and Malaysia, together with the opening of a new flagship store in Harbour City, Hong Kong. In Japan, our business grew by 29.0% at constant currency driven by strong organic growth and the impact of the store development programme, as well as an influx of clients from the Chinese mainland.

In EMEA, sales benefitted from a weaker Euro which aided strong growth in international clients, including Chinese clients. This was in part offset by the loss of Russian visitors and more recently the impact of geopolitics. Sales in the region were 4.9% ahead of last year on a constant currency basis. Sales in the Americas region benefitted from the growth in Latin America. We made good progress in the USA despite a market distorted by both foreign exchange fluctuations (affecting buying behaviour) and competitive pressures. Sales in the region were 0.7% below last year on a constant currency basis.

As part of the overall retail performance, online sales showed good growth, with the website benefiting from a substantial upgrade during the year designed to improve mobile and tablet user experience and pave the way for Omnichannel services later in 2016.

Profit Analysis

Gross margin

In 2015, our gross margin continued to benefit from the favourable channel mix shift towards retail, volume growth and the impact of the weakening Euro reducing production costs. At the same time, we have up-weighted our participation in Men's and also in the fashion component of our collections which has partially offset the margin improvement, along with higher transportation costs during the transition to the normal operation of our Swiss Warehouse. As a result gross margin at 62.7% improved by 0.9ppts against a 2014 reported gross margin of 61.8%.

Costs

Overall, total costs charged in arriving at Adjusted EBITDA increased by 9.7% in 2015, compared to a 6.1% growth in total revenue in the same period.

Selling and distribution expenses reflected the impact of the store development programme, including the opening of 13 new DOS, the conversion of our franchise stores in Singapore and Malaysia and the renovation of 15 DOS in the same period. As a result these costs increased by £10.1m (12.1%) in 2015.

We continued to invest in Brand communication during the year, with an investment of £15.5m or 4.9% of new revenues, up by 9.8% vs 2014. Our media presence continued to grow and we were again ranked as number 1 in global editorial ranking for luxury shoes. We were also ranked again as "Gifted" for our digital presence by the digital agency L2, with our social presence again being rated "Genius".

Overheads for 2015 were in line with our target of cost increases below revenue growth. This was achieved through continued tight cost control and process efficiency improvements following the completion of the implementation of SAP in the Head office and EMEA in 2015. Total overheads of £39.6m were 4.5% ahead of last year, while on an underlying basis (excluding the new costs associated with listed company status) overheads fell by 3.1%. As a result of the recent investments in systems infrastructure and replatforming, we expect that future overhead cost growth will be below revenue growth.

Exceptional costs of £2.4m (2014: £13.0m) were incurred during the year and were largely related to the majority of remaining costs associated with the replatforming of the business.

Profits and earnings

In 2015, Adjusted EBITDA grew by 1.5% compared to the prior year, with Adjusted EBITDA margin declining to 16.0% from 16.8%. This decline resulted from the full year effect of costs associated with listed company status, the impact of the DOS opening programme and brand communication investment during the year, offsetting gross margin gains and lower overhead growth.

Depreciation and amortisation reflected the continued investment in new stores, the roll-out of the New Store Concept and the replatforming of business systems in 2015 and grew from £14.9m in 2014 to £17.8m in 2015, an increase of £2.9m or 19.7%. Depreciation rose from 5.0% to 5.6% of revenues, leading to Adjusted EBIT of £33.2m (2014: £35.4m).

Our lower external loan balances led to decreased financing charges of £7.7m (vs £8.8m in 2014). This was offset by a net loss on realised and unrealised foreign exchange of £0.9m (vs a net gain in 2014 of £1.8m) which led to adjusted EBT for the year of £24.5m (2014: £28.3m).

Adjusted Consolidated Net Income for the year was £19.0m (2014: £22.9m) generating Adjusted EPS of 5.0 pence per share (2014: 6.1 pence per share). In overall reported terms, Consolidated Net Income of £19.4m compares with a loss of £10.8m in 2014.

Cashflow

Working capital management remains a key focus in Jimmy Choo. As a result we achieved a reduction in inventory and constrained the growth in receivables below revenue growth. Cash conversion improved to 96.5% of Adjusted EBITDA in 2015 from 92.2% of Adjusted EBITDA in 2014.

Free operating cash flow of £1.5m in 2015, increased by £5.6m compared to a net outflow of £(4.1)m in 2014. This was driven by a significant improvement in cash generated from operating activities and exceptional payments which were lower than in 2014 and were IPO related.

Net Debt

Net debt reduced from £125.6m at 31 December 2014 to £121.4m at 31 December 2015 driven by an improved net cash position. During the year, we repaid £7.5m in respect of our term loans related to the Capex/Acquisition facility. The bank reported leverage measure (Net debt: EBITDA) fell by 12.4% to 1.90x (2014: 2.19x).

 On 17th March 2016 we signed and completed the refinancing of Jimmy Choo with a new facility of £200m. This results in a reduction in borrowing costs, an improvement in headroom and certainty over our financing for the next 5 years and is earnings accretive from the outset.

Outlook

We remain confident in our ability to grow faster than the luxury market. Our business in Asia (where we are underpenetrated) and Japan is growing well, and we see significant opportunities to maintain this outperformance in the years ahead. In 2016 we expect to start the implementation of Omnichannel services in the USA and Europe which will allow us to enhance product availability, improve inventory management and increase client engagement for our retail and online network. Despite challenging market conditions, we expect continuous operating efficiencies and the dynamism and flexibility of our teams to enable us to drive margin expansion and continue the reduction in leverage and financing costs.

Appendix 1 - Financial Information

Consolidated income statement

For the year ended 31 December 2015

Consolidated statement of other comprehensive income

For the year ended 31 December 2015

Consolidated statement of financial position

As at 31 December 2015

Consolidated statement of changes in equity

For the year ended 31 December 2015

Consolidated statement of cash flows

For the year ended 31 December 2015

Notes to the consolidated financial statements

1. Basis of preparation

The financial information contained in this preliminary announcement has been prepared on the historical cost basis except for the revaluation of certain financial instruments which are carried at fair value.

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2015 or 2014 but is derived from those accounts. Statutory accounts for 2014 have been delivered to the registrar of companies, and those for 2015 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Full financial statements for the year ended 31 December 2015, will be posted to shareholders and made available on the Company's website at least 20 working days prior to the Company's Annual General Meeting on 15 June 2016 and delivered to the registrar after this meeting.

Basis of consolidation

On 16 October 2014, the Company obtained control of the entire share capital of Choo Luxury Group Limited by way of a share for share exchange with one share in the Company being exchanged for each share in Choo Luxury Group Limited. There were no changes in rights or proportion of control exercised as a result of this transaction.

Although the share for share exchange resulted in a change in legal ownership, in substance the comparative financial statements reflect the continuation of the pre-existing Group, headed by Choo Luxury Group Limited.

Changes in Accounting Policy

Whilst the financial information included in this preliminary announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the European Union and as issued by the International Accounting Standards Board, this announcement does not itself contain sufficient information to comply with IFRS. The Group has consistently applied the accounting policies set out in this note to all periods presented in these consolidated financial statements.

The Group has adopted the following amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 January 2015.

Annual Improvements to IFRSs 2010-2012 Cycle

Annual Improvements to IFRSs 2011-2013 Cycle

There was no material impact on the reported financial performance or position of the Group.

Going Concern

The Group's consolidated financial statements are prepared on a going concern basis as the directors have a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future. The Group has considerable financial resources, together with a strong on-going trading performance.

The directors have reviewed the Group's forecasts and projections. These include the assumptions around the Group's products and markets, expenditure commitments, expected cash flows and borrowing facilities.

Taking into account reasonably possible changes in trading performance, and after making enquiries, the directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for the foreseeable future. Accordingly the directors consider it appropriate to continue to adopt the going concern basis in preparing the financial statements.

2. Operating segments

Retail revenue is generated through the sale of luxury goods to end clients through Jimmy Choo directly operated stores in Europe, North America, Japan, Hong Kong, China, Singapore and Malaysia and through the Group's website. Wholesale revenue is generated through the sale of luxury goods to distribution partners, multi-brand department stores, travel retail stores and speciality stores worldwide. Other revenue is predominantly generated through receipt of royalties from the Group's global licensees of Jimmy Choo branded fragrance, sunglasses and eyewear products.

The following is an analysis of the Group's revenue and results by reportable segment for the year ended 31 December 2015.

The following is an analysis of the Group's revenue and results by reportable segment for the year ended 31 December 2014.

3. Exceptional costs

The Group incurred the following costs during the years presented that are considered to be exceptional:

Acquisition and integration costs relate to initiatives put in place following the acquisition of Passion Holdings Limited on 1 July 2011 and came to an end on the IPO of the Group in October 2014.

Replatforming costs represent costs associated with strengthening product development (in the Florence facility), reinforcing the team in key functions, undertaking regional buyouts in Asia and scaling up the information systems capability and office infrastructure to support the growth strategy, as well as associated streamlining of the organisation.

IPO costs represent costs directly associated with the listing of the Group on the London Stock Exchange in October 2014. 31 December 2014 IPO costs include an exceptional charge of £1.6m in respect of the accelerated vesting of the Group's cash-settled share-based payment scheme at IPO.

Replatforming and IPO costs are considered to be one-off in nature and are therefore appropriate to recognise as exceptional costs.

4. Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. There were no shares issued for the year. The difference between basic and diluted earnings per share is not material.

In order to provide a measure of underlying performance, the Group has chosen to present an additional illustrative measure of Adjusted earnings per share. Adjusted earnings per share has been calculated using adjusted consolidated net income (see note 10) and dividing by the number of ordinary shares outstanding as at 31 December 2015.

5. Staff numbers and costs

The average number of persons employed by the Group (including directors) during the year, analysed by category, was as follows:

The aggregate payroll costs incurred were as follows:

Full details of directors' remuneration and interests are set out in the Directors Remuneration Report in the Annual Report and Financial Statements.

Share-based payment expenses have been recognised in administrative expenses in the current and prior year. Included within share-based payments expenses for the year ended 31 December 2014 is an expense of £1.6m that relates to the accelerated vesting of the Group's cash-settled share-based payment scheme and is disclosed within exceptional costs (see note 3).

6. Financial Income and expense

Interest incurred on the shareholder credit facility ceased on 3 October 2014 when the Group entered into a debt for equity swap agreement, which discharged the shareholder credit facility in exchange for the issue of ordinary shares in Choo Luxury Group Limited (see note 9).

7. Taxation

The tax charge is reconciled with the standard rates of UK corporation tax as follows:

8. Acquisition of subsidiaries

On 1 April 2015, J. Choo Limited acquired part of the trade of American Style Pte. Ltd. and Valiram Avant Garde Sdn. Bhd. Prior to the acquisition, American Style Pte. Ltd. and Valiram Avant Garde Sdn. Bhd operated Jimmy Choo franchise stores in Singapore and Malaysia under a distribution agreement with J. Choo Limited. Jimmy Choo (Singapore) Pte. Ltd subsequently acquired the operating leases, the tangible fixed assets and stock of the franchised stores from American Style Pte. Ltd. and Jimmy Choo (Malaysia) Sdn. Bhd. subsequently acquired the operating lease, the tangible fixed assets and stock of the franchised store from Valiram Avant Garde Sdn. Bhd. The total consideration paid was £3.4m.

9. Capital and reserves

Share capital

Share capital is comprised of:

Share premium

Share premium of £99.5m arose on the debt for equity swap transaction between JAB Luxury GmbH and Choo Luxury Group Limited on 3 October 2014. The carrying value of the Shareholder Credit Facility (including accrued interest) at the date of the debt for equity swap was £489.2m.

Own shares reserve

The cost of the Company's ordinary shares held by the Jimmy Choo PLC Employee Benefit Trust is treated as a deduction in arriving at total shareholder's equity. The movement in the own shares reserve was as follows:

Shares held by the Jimmy Choo PLC Employee Benefit Trust will be used to satisfy options awarded under the Group's long-term incentive plan.

10. Reconciliation to non-GAAP performance measures

Adjusted EBITDA

11. Post Balance Sheet Event

On 17 March 2016, Jimmy Choo PLC signed a new 5 year financing agreement, which includes a £125m term loan and a revolving credit facility of £75m with an option to increase by a further £50m.

Appendix 2 - Supplementary Financial Information

Table 1 - Costs charged in arriving at EBITDA

Table 2 - Free operating cash flow

(1) Adjusted operating cash flow is defined as Adjusted EBITDA plus/minus non-cash charges in respect of share-based payments, realised and unrealised foreign exchange gains and losses on the revaluation of monetary items and working capital. Working capital is defined as the sum of changes in trade and other receivables, inventories, trade and other payables and provisions.

(2) Cash conversion is defined as Adjusted operating cash flow (as defined above) divided by Adjusted EBITDA.

(3) Acquisition of property, plant and equipment and other intangible assets.