Michael Kors is set to acquire Jimmy Choo for $1.2 billion, the British luxury shoemaker whose footwear has found fans in famous faces ranging from Princess Diana to Kendall Jenner. The move comes two months after rival handbag maker Coach struck a deal to buy quirky fashion brand Kate Spade & Co.
"Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories," said Michael Kors, honorary chairman and chief creative officer, said this week of the brand which was founded by Mr. Jimmu Whoo in the 1990s. "We admire the glamorous style and trend-setting nature of Jimmy Choo designs."
As noted by Reuters, Choo's "strong performance stands in contrast to Michael Kors which has lost 65 percent of its market value since 2014 due to fierce competition at the more affordable end of the luxury market and a drop in customers at department stores. Michael Kors, which has tried to fight back by expanding into dresses and menswear and its online business, said in May that sales at stores established for more than a year fell 14 percent in its fiscal fourth quarter.