Christian Louboutin UK navigates challenging retail landscape in FY25

Christian Louboutin UK Limited, the British arm of the iconic French luxury footwear and accessories brand, has reported a resilient performance for the fiscal year ended August 31, 2025. Despite a cooling luxury market and macroeconomic pressures affecting UK consumer spending, the company bolstered its gross margins and maintained a stable net asset position.

The company's turnover for the year of 32.73 million pounds (44.05 million dollars), a decrease of 7 percent from the previous year’s 35.38 million pounds. Profit before tax for the year declined to 0.16 million pounds. Despite lower sales, gross profit rose to 13.89 million pounds, with margins expanding to 42 percent. Operating profit stood at 898,670 pounds, compared to 2024.

Management attributed the decline in turnover to a broader slowdown in the luxury sector and the continued erosion of UK consumer spending power. Additionally, the business continues to navigate the long-term impacts of post-Brexit tax-free shopping rules, which have dampened international tourist spend.

To counter these pressures, the company focused on inventory optimization, successfully reducing stock levels by 18 percent year-on-year. Margin improvements were primarily driven by better "sell-through" rates. The company also benefited from financial support and a corporate guarantee from its parent company, Christian Louboutin SAS, ensuring its status as a going concern.

The reporting period saw a strategic refinement of the brand’s UK footprint, which currently comprises 11 locations, including boutiques and concessions. During the year, the board saw the appointment of Anne Gabrielle Jeanne Raynal as a director, effective September 1, 2025, following the resignation of Magali Clement in January.