Kurt Geiger Progressing Towards Sale After Achieving Record £360 Million Revenue

Kurt Geiger’s leadership anticipates that the sale of the premium shoe and handbag retailer will finalize before the year’s end.

The private equity firm Cinven, which has owned the brand since 2015, has engaged Bank of America as advisers to facilitate a potential sale of around £400 million, a process that has been underway since late last year.

Neil Clifford, Kurt Geiger’s CEO, confirmed that the retailer remains available for acquisition, stating, «There’s plenty of interest from both strategic buyers and private equity firms. [A sale] will probably complete this year.» He refrained from disclosing the identities of the interested parties, noting that discussions are still in the preliminary phases.

Clifford’s remarks coincided with the company’s announcement of record sales reaching £360 million in the year ending February, marking a 10% increase compared to the previous year. During this period, earnings surged by 34% to £40.4 million.

The London-based retailer attributed its success to a growing demand for more «affordable luxury» products, a trend surfacing amid the current cost of living crisis that has affected higher-end brands.

With handbags priced between £199 and £269, Clifford emphasized, «Our pricing is significantly lower than our competitors. Our value and creativity are helping us increase market share, especially as not everyone can afford a £2,000 handbag.»

Although originally a shoe retailer, handbags now represent the largest portion of Kurt Geiger’s revenue, accounting for 60% of total sales and emerging as the top-selling category in the U.S., which has recently become its most significant market.

Since 2018, gross sales in North America have skyrocketed by one hundredfold, climbing from £2.5 million to £255 million. In a strategic move, the brand is expanding its retail presence in the U.S., having launched its first store in Orlando this past May, with plans for three additional store openings in New York, Los Angeles, and San Diego this fall. The goal is to establish 50 locations across America in the coming years.

In the UK, the company operates over 80 stores and has concessions within prominent department stores like Harrods and Selfridges.

Clifford, 57, celebrated Kurt Geiger as a «British success story,» stating with confidence, «If we continue to enjoy our current fortunes, adhere to our strategy, and our team works diligently, we’ll reach £100 million in earnings within five years. I believe we can also achieve £1 billion in turnover.»