What's Happening?
Manolo Blahnik is intensifying its direct-to-consumer (DTC) strategy, resulting in a 13% increase in DTC sales for the fiscal year ending December 31, 2024. This shift has led to a reduction in wholesale channels and significant investments in new store locations. Despite a 61% decline in EBITDA due to these investments and global luxury market headwinds, the brand reported its third-best sales year on record. CEO Kristina Blahnik emphasized the brand's transformation towards a customer-focused model, enhancing brand experience and building resilience.
Why It's Important?
The strategic shift to DTC is crucial for Manolo Blahnik as it navigates a downturn in the luxury market. By deepening customer relationships and expanding its retail presence, the brand aims to create lasting value and maintain its heritage status. The investments in new stores and the focus on e-commerce are expected to drive future growth. However, the decline in wholesale presence and market challenges pose risks that the brand must manage to ensure continued success.
What's Next?
Manolo Blahnik plans to open new stores in Milan and California later in 2025, following the recent opening in Miami. The brand projects modest revenue growth in fiscal year 2025, with more significant gains anticipated in 2026 as its channel strategy and store investments take full effect. The company remains financially resilient, with no external debt and strong liquidity, positioning it well for future expansion.
