This week Michael Kors Holdings added a new item to their cart; Jimmy Choo’s.
The company has announced it will purchase Jimmy Choo for $1.2 billion, making it very expensive purchase for shoes. But these aren’t just any shoes, these are Jimmy Choo’s!
If you have been following Michael Kors you’d know he started off a high end designer and became a brand. His popularity grew so much the brand began making different tiers to be able to reach a broader target market, even putting some of his lower tier brand at Costco.
With the purchase of luxury company Jimmy Choo, not only add value to Michael Kors Holdings but will also reach high-end market. “Acquiring Jimmy Choo is the beginning of a strategy that we have for building a luxury group that really is focused on international fashion brands,” John D. Idol chairman said in an interview.
Idol also mentioned they would like to increase Jimmy Choo’s sales to $1 billion annually, interesting coming from a company where sales has been a little bit rocky and inconsistent.
LVMH, a luxury and lifestyle group that caters to a very specific and high-end market, is one of Michael Kors Holdings competitors, and now with Jimmy Choo on the rise is definitely on LVMH’s radar. But MK has still a very long journey to get to LVMH’s level of luxury but with Choo’s in hand they are going the right direction.
Can’t wait to see how this will all unfold. Will it be a success or will I be buying a pair at my next trip to Costco?