News

Michael Kors buying itself some high-end shoes

July 25, 2017

Luxury fashion accessory player Michael Kors Holdings is buying high-end shoe maker Jimmy Choo in a $1.2 billion deal.

The acquisition, according to a New York Times report, could prove to be a bonanza, given the brands' highly respected lines and the fact that they sell to various consumer populations.

The deal comes months after news that handbag fashion house Kate Spade is being acquired by Coach for $2.4 billion. Jimmy Choo went up for sale this past April, according to the report.

"For Michael Kors, this deal presents an opportunity to enter the high end of the luxury market, to increase sales and to diversify away from its own brand, especially at a time when it is experiencing declining same-store sales," Jonathan Buxton, head of consumer and retail at investment bank Cavendish Corporate Finance, told the Times.