Jimmy Choo Delisting Into Michael Kors Group

Following the United States

After the Coach Kate Spade was broken, Michael Kors finally took the Jimmy Choo in one fell swoop.

In November 8th, according to the latest documents disclosed by the British court, the US luxury brand Michael Kors acquired the high-end market in the UK.

The paction of brand Jimmy Choo was approved last Friday, and the takeover operation was carried out by the European Commission.

At present, Jimmy Choo has been officially delisted from the London Stock Exchange and merged into Michael Kors group.

According to the world clothing and shoe net, as early as July this year, Michael Kors announced that it would buy Jimmy Choo at a price of 1 billion 200 million US dollars.

The Michael Kors and Jimmy Choo after the completion of the paction still maintain the independent operation of the two brands.

Pierre Denis continues to serve as CEO of Jimmy Choo, while Sandra Choi continues to be the creative director.

Focus on high-end

Shoe Jimmy Choo has been doing well.

In the first quarter of this year, JimmyChoo's stock price rose by more than 20%, and its market value has reached 771 million pounds as of May.

For sale, JAB, the main controlling shareholder of Jimmy Choo, explains that the global fashion retail environment is on the decline and fashion is not its core business. Giving up the fashion business including Jimmy Choo will help to focus more on the development of consumer goods such as coffee and sandwiches.

The acquisition of the protagonist Michael Kors is different from that of Jimmy Choo.

Michael Kors, a lightweight luxury product specializing in handbags and accessories, once failed when competing for Kate Spade with Coach, known as "light luxury". The acquisition of Jimmy Choo can be seen again.

Jimmy Choo chief executive Pierre Denis said the deal would help both sides achieve a win-win situation and work together to build a leading global luxury retail group.

Michael Kors also expects Jimmy Choo to generate 570 million to 580 million dollars in revenue in fiscal year 2019.

In the current economic situation, the days of fashion industry are much worse than before.

The recession has allowed consumers to tilt towards the ends of the market. The fast fashion brands that are popular in the mass market share the same level with high-end luxury goods.

Michael Korschu's performance is also not optimistic. Data show that Michael Kors's share price has dropped by 64% over the 101 US dollar peak in February 2014.

In order to reverse the situation, Michael Kors has also made decisions to expand its business scope to other fields, which can spread risks to multiple brands and may be able to withstand the impact of the economic downturn to a certain extent.

The acquisition of high-end luxury goods Jimmy Choo has been seen as a shortcut in pformation, which will enable him to find a shortcut in pformation and supplement his short position in positioning.

It is reported that Michael Kors currently has less than 11% of its revenue from footwear, and this category accounts for 75% of Jimmy Choo.

The acquisition will strengthen the shoe business of Michael Kors to 17%, and the category structure will be more balanced.

"We are building a global fashion luxury group, and we are committed to becoming the leader of the international fashion and luxury industry," John D.Idol, chairman and chief executive of Michael Kors, said in an interview.

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