LONDON – Due to declining demand for luxury goods, Manolo Blahnik reported declines in sales and profits in fiscal 2023, but the company remains optimistic and plans to open stores in new markets such as Shanghai, Miami and Milan.

The London-based footwear and accessories brand reported a 10 percent decline in sales to 106.5 million euros and a 30 percent decline in pre-tax profit to 15.4 million euros in the twelve months to December 31, 2023.

The privately held company said performance was in line with expectations despite slowing demand for luxury goods.

Operating profit remained “strong” at 15 percent of sales and the company said it made significant investments in infrastructure and supply chain during the period.

The results will be published in the coming days in Companies House, the UK’s commercial register.

Manolo Blahnik expects a “return of customer confidence in 2025,” which will coincide with expansion plans into new markets in China, North America and Europe.

“As expected, our performance in 2023 rebalanced due to an exceptional year of excellent sales and consumer demand in 2022 and in light of the challenging macroeconomic and geopolitical environment. Against this backdrop, we are pleased to still report positive performance in line with our business plan in our second best year ever,” said Kristina Blahnik, CEO.

She expects there will be “a sustained adjustment to pre-COVID demand” in 2024 and said the company has used the transition period to restructure.

Manolo Blahnik has refined its direct-to-consumer and business-to-business models, placed greater emphasis on retail and owned channels, and consolidated its wholesale network.

Blahnik added that the work behind the scenes will put the company in a strong position for growth once consumer confidence recovers.

The coming months will be big months for the brand.

Later this year, Manolo Blahnik will reach a milestone and begin trading in China. The company plans to open its first store in Shanghai.

The company recently established a Wholly Foreign Owned Enterprise (WFOE) in China and recently secured the rights to use its brand name there after more than twenty years of legal disputes.

In 2022, after a 22-year legal battle, China’s Supreme People’s Court, the country’s highest court, ordered the invalidation of an illegal Manolo Blahnik trademark registered in 2000 by a local businessman.

The company is also active in Hong Kong. Earlier this year, Manolo Blahnik formed a joint venture with the Bluebell Group to open a series of stores in the region.

The first boutique opened on March 22 at Lee Gardens shopping mall in Hong Kong, with a second one planned for the last quarter of 2024 at Pacific Place shopping mall. A third store is also in the planning stages, with the location yet to be confirmed.

Manolo Blahnik and Bluebell have existing partnerships in other Asian markets such as Japan, Malaysia, Singapore and Taiwan.

Although Asia is high on the agenda, the company also plans to expand into other markets. In early 2025, it will open flagship stores in the Miami Design District and Milan, two cities where it currently has no direct retail stores.

As reported, the company has also made changes in its home country.

Last September, Manolo Blahnik moved its UK headquarters from Marylebone to a historic Georgian building in London’s Mayfair with a gross area of ​​over 1,350 square metres of office, exhibition and conference space.

The group has also revamped its e-commerce site and improved its conversion metrics, and last September it expanded its digital archives to include a new virtual space designed to highlight arts and crafts.

The room is called “The Manolo Blahnik Archives, The Craft” and features eight vignettes that explore the craft process from design to technique to manufacturing. Hundreds of digital assets are said to offer an “unprecedented” insight into the art of shoemaking.

The brand has also committed to donating 0.5 percent of its sales to the Manolo Blahnik Foundation, founded in 2022. The foundation supports causes such as mental health and well-being, animal welfare and new generations of talent.