Jimmy Choo, a British luxury brand whose fans include Beyoncé and the Duchess of Cambridge, has been snapped off the shelf for US$1.350 billion by US fashion brand Michael Kors.
The fashion house, which agreed to buy luxury shoemaker Jimmy Choo Plc for about US$1.350 billion on Tuesday, is planning to build a portfolio of upscale brands. And that means acquiring more businesses, possibly in the same billion-dollar range, according to Chief Executive Officer John Idol.
As part of the US$1.350 billion deal, Michael Kors KORS, +1.97% said it sees the opportunity to grow Jimmy Choo into a $1 billion brand, better position itself in the luxury footwear space, and expand in luxury accessories.
John D. Idol, Chairman and Chief Executive Officer of Michael Kors, said, “We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house. 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. We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Mr. Idol continued, “Pierre Denis will continue in his role as Chief Executive Officer of Jimmy Choo. He has led the company since 2012, during which time Jimmy Choo experienced compounded sales growth of 11% annually. Pierre brings more than 25 years of experience and a strong track record with global fashion luxury brands. Additionally, Creative Director Sandra Choi will continue to lead the creative and design teams at the company. Sandra has been with Jimmy Choo since its inception and has been the sole Creative Director since 2013. Her groundbreaking vision and fashion artistry have created a truly iconic and internationally recognized luxury brand. Mr. Denis, Ms. Choi and the rest of the highly-talented management team have done a tremendous job, and this continuity of leadership will ensure that the DNA of Jimmy Choo is maintained as we work together to continue to grow the brand globally.”
Michael Kors, Honorary Chairman and Chief Creative Officer of Michael Kors, said, “Jimmy Choo is a premier fashion luxury house that offers distinctive footwear, handbags and other accessories. We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group.”
Pierre Denis, Chief Executive Officer of Jimmy Choo, said, “It is a privilege for our management team to lead Jimmy Choo and to preside over such an exciting period for our company. We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand. 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.”
While Michael Kors have been a famous pick among the bag lovers having renowned for its amazing collection into luxury fashion market. Taking over Jimmy Choo will give them a great hike into the markets with a new spread over footwear collections.
Once upon a time, Jimmy Choo was a byword for posh footwear. The brand came of age during the paparazzi years, a colourful time of Paris Hilton and Sex and the City and showstopper high heels. A few pairs spring to mind: the suede and feather platform worn (and lost) by Carrie Bradshaw in an early episode, the notable zebra print boot – the first worn on the red carpet in the US – and Princess Diana’s purple flats.
Soon this started changing and since the last decade Jimmy Choo have been going through the down-fall; may be not in terms of its popularity but surely in terms of its sales.
Perhaps this sale tells us more about Michael Kors – the American label whose sales were battered after taking on an ambassadorial role as label du jour of “basic”, a pejorative term associated with the mainstream. Though lacking in hipness, Jimmy Choo still carries some weight. They are still worn by Kate Middleton, and still arguably dominate the red carpet so it makes sense that a label like Michael Kors – more affordable, often discounted – would want a stake in them.