Bouncing Back, SKP Group’s Turnover Rose 15% in 2025

LONDON — SKP, 1 of the astir profitable luxury retailers globally, logged a group-wide 15 percent summation successful turnover successful the twelvemonth ending Dec. 31, 2025, according to sources acquainted with the matter, who requested anonymity.

Annual turnover of its flagship task SKP Beijing recorded a 6.8 percent summation to 23.5 cardinal renminbi, oregon $3.4 billion, successful the period, sources added.

More from WWD

• Marine Layer's Cofounders connected Brick-and-mortar Investments, Why Materials Matter and Running a B Corp Business

• Larger 2026 Tax Refunds Could Benefit Sneaker Sales successful February

• Harrods Unveils Latest Chinese New Year Pop-up With Labelhood

Faced with industrywide headwinds, SKP Beijing’s yearly turnover dropped astir 17 percent successful 2024 to 22 cardinal renminbi, down from a grounds 26.5 cardinal renminbi successful 2023. In 2020, SKP Beijing became the world’s astir profitable promenade aft beating Harrods with yearly income of 17.7 cardinal renminbi, according to reports astatine the time.

Apart from its Beijing flagship, the radical operates 3 different branches, including Xi’an SKP, Chengdu SKP and Wuhan SKP. Future projects in Guangzhou and Hangzhou are successful the works.

The 2025 figures demonstrated SKP’s resilience amid continuous pugnacious trading conditions successful China owed to myriad economical challenges.

According to a caller Bain report, mainland China’s idiosyncratic luxury goods marketplace contracted by 3 to 5 percent successful 2025. Premium quality rebounded by 4 to 7 percent, portion the manner class declined 5 to 8 percent, outperforming leather goods, which fell 8 to 11 percent during the aforesaid period.

However, during the latest reporting period, luxury behemoths person begun to spot clearer signs of betterment successful the Chinese market.

A caller Bernstein study noted that discretionary user request successful China had already improved successful the 2nd fractional of 2025, which aligns with the bank’s base-case script of a U-shaped betterment successful 2026.

“Landlords told america that 4th fourth 2025 has been the champion 4th successful postulation and revenues successful a agelong clip — much truthful successful the wide marketplace and premium space, and little truthful successful the precocious end, adjacent though some person seen incremental improvements,” the slope added successful the report.

Looking astatine 2026, October volition people the authoritative expansive opening of SKP Wuhan, arsenic the bulk of the 44 properties that person been repurposed for marque takeovers connected its K Avenue volition beryllium unveiled.

Brands successful China person been shuttering underperforming stores and betting connected trusted developer-managed locations with mega flagships, and SKP plays a cardinal relation successful that development.