Michael Kors Steps into Jimmy Choo Shoes for $1.2 Billion

Premier fashion house, Michael Kors, has closed the deal to buy prominent shoemakers, Jimmy Choo, for $1.2 billion.

Jimmy Choo has been a household name in the fashion industry since being founded in 1996 by former Vogue editor, Tamara Mellon, and designer, Jimmy Choo. The brand has over 150 stores globally and has gained popularity amongst A-listers in the last two decades. These iconic shoes have been worn by coveted public figures such as Princess Diana, Kate Middleton and Michelle Obama on several occasions. Jimmy Choo footwear has also been a favourite amongst a long list of celebrities including Meryl Streep, Beyoncé, Rihanna, and Sandra Bullock.

In a competitive retail landscape, Michael Kors had been suffering from plummeting sales since going public in 2011. In fact, the company had lost one-fifth of its share price value in 2017 and was planning to close over a hundred stores.

While Michael Kors has been playing in the affordable luxury segment, Jimmy Choo has been selling shoes at a much higher price point. The acquisition thus brings a whole new customer segment for Michael Kors, which had been looking to diversify for a long time.

The brand currently has a portfolio of products under the designer’s name including handbags, fragrances, eyewear, accessories, jewellery, and watches. By adding Jimmy Choo footwear to its portfolio, the company is trying to shift its focus to tap on the world’s wealthiest consumers.

Michael Kors plans to develop Jimmy Choo’s online presence and grow its Instagram followers that currently stands at 6.8 million. Michael Kors chairman and chief executive said in a news release, “We believe that Jimmy Choo is poised for meaningful growth in the future. We are committed to supporting the brand equity that Jimmy Choo has built over the last 20 years.”