23 July 2017
Jimmy Choo
Acquisition
Michael Kors to Buy Jimmy Choo in $1.2 Billion Deal
On Tuesday,Michael Kors Holdings said it had agreed to buy the shoe company Jimmy Choo for 896 million pounds, or about $1.2 billion, the latest push by an American high-end fashion house to find new sources of growth and what its chief executive characterized as the first step in building a bigger international luxury group. Many upscale brands like Michael Kors have faced plummeting sales and tepid profits. Mall traffic in North America has declined sharply, while shoppers who have traditionally been loyal to the so-called middle market have gravitated toward brands at extremes of the style and price spectrum. The trends have played well for e-commerce giants like Amazon, fast-fashion brands like H&M and Zara, and luxury houses like Gucci. But it has left companies like Michael Kors — once the runaway leader of the “accessible luxury market” — exposed. Jimmy Choo, which shot to prominence thanks to celebrity patrons like Princess Diana and the “Sex and the City” star Sarah Jessica Parker, could give Michael Kors a new avenue for growth.