Here’s some fashion news ….you probably can use! Michael Kors buys luxury footwear brand Jimmy Choo for $1.2 Billion. Kors is attempting to shore up declining demand for luxury handbags that have plagued his company over the last two years. We reported over a year ago about how the Michael Kors brand was becoming umbiqtious due to its availably everywhere. Literally everywhere. From Nordstrom’s, Macy’s, Belk, TJ Maxx, basically every big name retailers is a vendor. Not to mention the stand alone Michael Kors stores,the brand suffered a hit in sales. Consumers especially the one’s that love luxury handbags want an exclusivety of owning a one of a kind piece. No one wants to walk around and run into someone or multiple someones with the same handbag or accessories. You can even rent to own a Michael Kors handbags from Rent -a Center! Crazy right?
Michael Kors said in May that “sales at stores established for more than a year fell 14 percent in its fiscal fourth quarter,” according to Reuters.
Jimmy Choo rose into pop culture in the late 1990’s with iconic women like Princess Diana and we all know that Carrie Bradshaw from every fashionistas fav show Sex and the City.The acquisition is aimed at diversifying the company’s product offerings, particularly in terms of men’s footwear, which company heads describe as a “hidden jewel.”
The sale is said to be finalized in the fourth quarter of 2017. Michael Kors CEO John Idol stated to NPR that he believes Jimmy Choo “can more than double its sales to $1 billion annually.” The two brands will continue to operate “very independently,” he added, but will together make up a “global fashion luxury group.”
A goodie about this deal is that Michael Kors say they will keep Jimmy Choo’s existing management team that is led by CEO Pierre Dennis.