Manolo Blahnik’s revenues hit by shift towards direct-to-consumer

Luxury footwear and accessories brand Manolo Blahnik has reported that its strategic shift towards a more direct-to-consumer (D2C) focused model has led to lower revenues in 2024, while also being its third-best year of sales to date.

Revenues at the luxury footwear brand dropped 19 percent year-on-year to 86.4 million euros (74.5 million pounds) for the 12 months to December 31, 2024. This decline is attributed to streamlining its wholesale network and increasing investment in its own distribution channels.

Its investment in its own channels, and current macroeconomic headwinds that have contributed to the global luxury slowdown, led to EBITDA, earnings before interest, taxes, depreciation and amortisation, of 8.4 million euros (7.2 million pounds), a decline of 61 percent from 2023.

“This result is in line with expectations and is primarily due to significant investments in the store opening programme,” explained the luxury label in a statement. The company reports that it has invested 4.3 million euros (3.7 million pounds) in seven new stores worldwide, making the brand now available in more locations and markets than ever before. The new store openings in 2024 almost doubled its directly operated boutiques worldwide.

Manolo Blahnik also noted that D2C sales were already “delivering positive results” with a 13 percent increase in 2024, representing 32 percent of total revenue, up from 22 percent in 2023. The growth it states shows the success of its strategic shift toward a “more resilient and customer-focused business model,” which began in 2018.

Despite the decline in revenues, group sales in 2024 marked the “third-best year on record” for the company, following two consecutive record-breaking years in fiscal year 2022 and fiscal year 2023, which it states underscores the impact of the ongoing strategic realignment.

Manolo Blahnik sales drop 19 percent in 2024, EBITDA falls to 8.4 million euros

Kristina Blahnik, chief executive of Manolo Blahnik, said: “2024 was a year of bold transformation and meaningful investment for Manolo Blahnik. We made significant progress in advancing our long-term strategy to evolve the brand into a more direct-to-consumer-led business, deepening our relationships with customers, enhancing the brand experience, creating strong partnerships with our considered wholesale partners and building a more resilient business model.

“Amid a downturn in the luxury market, we doubled our number of directly operated boutiques, so I am particularly proud to report a strong sales performance – our third best year to date. Being an independent, heritage brand gives us the rare privilege and freedom to make long-term decisions that build lasting value. We can focus not just on immediate gains, but on shaping a future where Manolo Blahnik continues to thrive and inspire.”

Manolo Blahnik shows signs that its strategic shift to a DTC model is working

2024 also saw the luxury brand continuing its investment in people, product and purpose, including the Manolo Blahnik Foundation. The group was certified as a ‘Great Place to Work’ for the first time both in the UK and the US, and increased its headcount by 10 percent, driven by retail expansion.

In addition, the company adds that it is continuing to donate 10 percent of its annual operating profit to the Manolo Blahnik Foundation, formed in 2022 to support mental health, animal welfare and nurturing the next generation. The foundation will support a new undergraduate scholarship programme at the University of the Arts’s London College of Fashion and provide grants to organisations such as the British Red Cross, the Mental Health Foundation, and Refuge for Pets.

Blahnik added: “The numbers alone don’t tell the full story; it’s the incredible people behind those results, our dedicated and passionate team, who truly make the difference. I want to sincerely thank each and every one of them. Their talent and commitment are the heart and soul of this company. When our people thrive, our business thrives, and it is their energy and creativity that propel our brand forward.”

Manolo Blahnik moves away from wholesale to more own stores and e-commerce

Looking ahead, Manolo Blahnik said like-for-like DTC revenues in June 2025 were up 14 percent year-on-year, with the group’s e-commerce channel performing the strongest, with like-for-like sales up 25 percent in the first half of the year.

The luxury footwear brand also added that it has now "successfully" completed the planned consolidation of its wholesale network and its store opening programme will continue “apace”. Following the opening of Miami in March 2025, two further openings are planned for Milan and California later this year.

Given the current sales climate for luxury brands, Manolo Blahnik is forecasting a “modest revenue increase” in fiscal year 2025, with “more significant growth expected” in fiscal year 2026 as the “benefits of its channel strategy and store investment programmed fully take effect”.

The company also added that it remains a “financially resilient brand with no external debt and a strong liquidity position” and believes it is well-positioned to navigate ongoing macroeconomic uncertainty and continue “delivering exceptional products and experiences to its global customer base”.