Kurt Geiger ‘on track to smash’ growth targets amid rising demand for handbags

Kurt Geiger has said rampant demand for its leather handbags has helped profits jump by a third over the past year and boost its US business.

The UK-based fashion brand said revenues also grew by a 10th as it furthered its commitment to the high street with a batch of new store openings.

It came as the business, which has been owned by private equity firm Cinven and its management team since 2015, unveiled a new campaign with model Emily Ratajkowski for its latest collection.

Neil Clifford, chief executive of the brand, said it was on track to “smash” its forecasts for the rest of the year as strong sales momentum continued.

Kurt Geiger recorded revenues of £360 million for the year to February 2024, up 10% on the previous year.

It said growth was driven by rising global demand for its “affordable luxury handbags”, now Kurt Geiger’s biggest-selling products.

The group’s fast-growing handbag business posted record sales of £115.6 million over the year.

2024 is on track to smash all of our most ambitious predictions – with our global footprint growing exponentially, driven by handbags

Kurt Geiger said its handbags, which sell at an average price of £250, had performed particularly well in the face of rising prices within the fashion market and waning consumer demand for luxury goods.

The retail business also highlighted particularly strong growth in the US, with revenues through its US website doubling to £29 million for the year.

The brand, which has famous fans including Kylie Jenner, Julia Roberts and Jennifer Lopez, is expanding across the US with planned store openings in New York, Los Angeles and San Diego later this year.

In the UK, Kurt Geiger opened eight new stores over the past year, including its global flagship on Oxford Street , London , measuring 3,000 square feet.

Not bad for an independent British brand, operating against a pretty tough economic backdrop

The group also revealed that earnings grew by 34.4% to £40.4 million for the year.

Mr Clifford said: “Our brand has unique design aesthetic – fun, colourful and instantly recognisable.

“2024 is on track to smash all of our most ambitious predictions – with our global footprint growing exponentially, driven by handbags.

“Not bad for an independent British brand, operating against a pretty tough economic backdrop.”