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Jimmy Choo facing boot from FTSE 250

By Holly Williams

Published 01/06/2016

Luxury: One of the group’s shoes
Luxury: One of the group’s shoes

Designer shoe brand Jimmy Choo could be kicked from the FTSE 250 Index while high street lenders Metro Bank and Clydesdale Bank are in line for promotion under a market reshuffle.

Jimmy Choo is among a number of second-tier stocks that could be relegated to the small cap index when the FTSE Russell EMEA Committee confirms the results of its quarterly review later today.

The company's shares have suffered sharply amid woes in the luxury goods sector sparked by the economic slowdown in China and worldwide, despite posting robust results.

The group - whose shoes were made famous by the character Carrie Bradshaw in Sex and the City - said in March that strong growth in Asia and Japan had helped retail like-for-like sales rise 1.1% in 2015. Underlying earnings, meanwhile, lifted 1.5% to £51m.

However, an 11% fall in shares over the past month has put Jimmy Choo on the list for potential relegation in the reshuffle, which is based on last night's closing share prices.

Recently-floated challenger banks Metro and Clydesdale have been enjoying better share fortunes and are on the list of small cap stocks that are up for possible entry to the FTSE 250.

It would come as a boost to Metro Bank after a shaky start to life as a listed company, with the group forced to cut the price of its shares to £20 from £24 on flotation in March as turmoil gripped the markets.

Shares have since risen to more than £22, and the group also recently said it was heading for its first profit after a record start to the year.

It trimmed underlying losses by 7% to £7.9m in the first quarter after attracting 62,000 new customers. Net lending more than doubled to £4.1bn.

Belfast Telegraph

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