25 July 2017•Update: 26 July 2017
SAN FRANCISCO
High-end fashion company Michael Kors announced Tuesday it agreed to acquire luxury footwear and accessories brand Jimmy Choo for $1.2 billion.
Michael Kors, headquartered in New York, said it hopes the addition of the London-based Jimmy Choo would help it further penetrate the luxury fashion market.
“We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house,” John Idol, Michael Kors chief executive, said in a statement. “Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally.”
Michael Kors has been highly focused on growing revenue ever since it went public in 2011. The company’s strategy revolved around deeply discounting its handbags and other goods but the brand’s growth peaked in 2013 and revenue actually declined in 2016.
Jimmy Choo put itself up for sale in April after a little more than three years as a publically traded company on the London stock market.
The company’s majority owner, an investment firm representing a billionaire family in Germany, wanted to focus more on consumer goods instead of luxury brands.
“Our two companies share the same vision of style and trend leadership. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally,” CEO Pierre Denis, who will continue to lead the company following the acquisition, said in a statement.
Michael Kors expressed special interest in the men’s footwear division of Jimmy Choo, a market it says will become very large in the years to come.
The deal is expected to close by the end of the year.
