Jimmy Choo said it would proceed with an IPO last month

Jimmy Choo said it would proceed with an IPO last month

High-end footwear and accessories brand Jimmy Choo could increase its store count by 50% over the next five years, fuelled by cash generated from the sell-off of shares, analysts believe.

The luxury shoemaker currently operates around 170 stores in 34 countries, but that store count could increase to over 250 with the funds from its IPO, Euromonitor analysts are predicting.

Jimmy Choo last month said it would proceed with an initial public offering on the London Stock Exchange.

The company said it will use the proceeds from the listing on its next phase of growth, which will include expansion into Asia and "selected new markets". The company, and owner JAB Luxury, intend to float at least 25% of the shares.

Reports this morning (17 October), however, suggest the firm is to set its flotation price at 140 pence per share, at the bottom of its indicative range.

Fflur Roberts, head of luxury goods at Euromonitor International, said: "The wider context of Jimmy Choo's listing is its growing importance in footwear endorsement compared with other apparel categories. Global sales of footwear have grown faster than clothing for more than a decade and Jimmy Choo will be the first luxury shoemaker to list on a stock exchange anywhere in the world, but it is unlikely to be the last.

"Luxury shoes have become big business in the luxury industry and businesses are keen to grab a piece of it. Five years ago, it was all about the "it" handbag, now it is increasingly about the "it" shoe. Consumer demand has been encouraged by extensive investment in footwear by big-name department stores unveiling huge new footwear departments in response to an insatiable appetite for trendy shoes."

Roberts believes product diversity for the shoes brand will be "key" because luxury fashion is renowned for its unpredictability.

"If Burberry can build a GBP2bn luxury lifestyle brand on the back of a trench coat, no one should bet against Jimmy Choo doing the same on the heel of a stiletto."