Manolo Blahnik's 2024 reset: sales -19%, EBITDA margin compresses on retail push
Bottom Line Impact
Without capex rephasing and tighter mix on icons, margins risk remaining sub-10 percent EBITDA; disciplined DTC rollout, inventory focus, and clienteling can restore EBITDA margin to low-teens within 12 months, defend market position, and sustain brand equity.
Key Facts
5- FY2024 revenue €86.4m, down 19% YoY vs an estimated €106.7m in FY2023
- EBITDA €8.4m, down 61% YoY, implying an EBITDA margin of 9.7% vs about 20.2% in FY2023
- Company attributes margin compression to significant retail store opening investments
- Despite decline, FY2024 is the brand's third-best sales year on record
- Fiscal year ended 31 Dec 2024; guidance not disclosed but management signals results aligned with internal expectations
Time Horizons
Key Roles Affected
Executive Summary
Manolo Blahnik delivered €86.4m FY2024 revenue (-19% YoY) and €8.4m EBITDA (-61% YoY) as accelerated retail investments and a softer luxury market weighed on profitability. The brand remains structurally sound with its third-highest sales year, but must rebalance capex, sharpen product mix, and protect price integrity to stabilize margins and defend share against better-scaled rivals.
Actionable Insights
Immediate Actions (Next 30-90 days)
Pause net new permanent store commitments for two quarters and adopt a stage-gate model with break-even within 9 to 12 months and rent-to-sales below 15 percent before full rollouts
Rationale: Retail capex is compressing margins; gating openings preserves cash and focuses resources on proven locations with faster payback
Role affected:CEO
Urgency level:immediate
Cut seasonal SKU count by 15 to 20 percent and allocate 60 percent of OTB to top icons and bridal capsules to lift full-price sell-through to 75 percent plus
Rationale: Concentrating on proven winners reduces markdown risk and improves inventory turns amid softer demand
Role affected:Chief Merchandising Officer
Urgency level:immediate
Short-term Actions (6-12 months)
Re-baseline 2025 capex down 20 to 30 percent via phasing and lease renegotiations, and target EBITDA margin recovery to 12 to 14 percent by Q4 2025
Rationale: Capex discipline and margin targets provide a measurable path to restore profitability while continuing selective DTC investment
Role affected:CFO
Urgency level:short-term
Shift 15 to 20 percent of media to high-ROI clienteling and CRM, with a goal to drive 25 percent of DTC revenue from known clients and reactivation within 12 months
Rationale: Existing clients deliver higher AOV and repeat rates, improving CAC efficiency and margin during a demand slowdown
Role affected:CMO
Urgency level:short-term
Risks & Opportunities
Primary Risks
- Prolonged luxury demand slowdown in the US and China extends markdown pressure and delays store paybacks
- Underperforming new stores increase cash burn and lease liabilities, further compressing EBITDA
- Brand heat erosion versus scaled competitors reduces pricing power and CRM effectiveness
Primary Opportunities
- DTC mix expansion and store productivity optimization can lift gross margin and stabilize EBITDA
- Icon and bridal-led assortment with made-to-order services supports price integrity and waitlist-driven demand
- Selective growth in Middle East and travel retail corridors captures resilient tourism spend