Luxury shoe manufacturer Jimmy Choo was just bought by Michael Kors for £896 million ($1.2 billion). Jimmy Choo brand shoes are very popular among female celebrities all over the world and have taken Hollywood and Bollywood by storm as a symbol of fashion and luxury.
In recent years, many famous luxury clothing brands have performed poorly and were consequently bought out by other firms. Michael Kors was one of these brands and in order to bolster their market share, began offering large discounts to its customers. Because of this, Michael Kors’ sales declined 11% last quarter. However, this recent acquisition is expected to give Michael Kors a much-needed foothold in the luxury fashion market.
According to Michael Kors, this will not be the last acquisition and according to John Idol, CEO of Michael Kors, they will begin to focus on creating a “luxury group” in the near future.