Michael Kors will purchase Jimmy Choo for $1.2 billion in an attempt to reestablish itself as a luxury brand.
The purchase of Jimmy Choo, Michael Kors’ first deal to expand beyond its own brand name since its initial public offering in 2011, gives the New York fashion and accessories company a presence in higher-end luxury, in a move similar to Coach Inc.’s 2015 acquisition of shoemaker Stuart Weitzman.
Michael Kors’s market value dropped by two-thirds in the past three years, and the fact that it’s available in discount stores has apparently cheapened its image. Ew, it’s too affordable! Bloomberg notes that Kors has been “reducing its exposure to department stores in an effort to boost its exclusivity.”
The acquisition of Choo—the brand made recognizable thanks to Sex and the City—marks a further push toward luxury for Kors. As Carrie would say, Michael Kors has the right to Choos (you knew it was coming).