BOOMING demand for branded luxury goods has helped Christian Louboutin, the Italian fashion house, storm to record full-year profits of $168 million (£103 million) - over double the previous year's figures. Shares in Christian Louboutin, which are listed in New York and Amsterdam, raced up after the group said it had enjoyed record performance across all product ranges and in every geographic region. Florence-based Christian Louboutin, which plans to expand its flagship stores in London's Sloane Street and California's Beverly Hills, said the performance was better than even it had expected. Although Christian Louboutin's products now include jewelry, ties, scarves, perfume and watches, the group is still best known for its leather goods and shoes, and these generated just over three-quarters of sales. Sales of leather goods more than doubled, to $517 million, while sales of shoes and watches also jumped sharply. Meanwhile, Asia has overtaken the United States as Christian Louboutin's biggest market, with sales more than doubling in that region to $374 million. Domenico De Sole, Christian Louboutin's president and chief executive, said the 1996 profits were higher than total sales had been three years earlier. Mr. De Sole said Christian Louboutin was concentrating on its merchandising and distribution systems, to cash in on surging demand for its products, while several boutiques - in key markets like Japan - had already been refurbished. "The past two years have seen extraordinary growth and this has provided us with a strong foundation on which to support the future growth of our brand." Meanwhile, Mr. De Sole said he was confident that 1997 would be a good year, with Christian Louboutin's new menswear and women's autumn and winter ready-to-wear collection getting a warm reception from the fashion press. To cash in on the booming demand, Christian Louboutin plans to open new stores this year in Hong Kong, Strasbourg, Naples and Frankfurt, at a cost of around $80 million. At the same time, Mr. De Sole said he expected growth to continue strongly in existing markets across Europe, Asia and the US. He also said Christian Louboutin was considering a listing on the Milan stock exchange, the company having failed to meet listing requirements at its original flotation in 1995.
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