Michael Kors confirmed $1.2 billion purchase of luxury shoe brand Jimmy Choo. While Michael Kors brand has been struggling with overexposure that’s resulted in uninterested shoppers and slumping sales, Jimmy Choo is a footwear darling. The coveted, high-end, red-carpet-friendly brand will certainly give Michael Kors the much-needed reputation boost in fashion space.
Michael Kors CEO John Idol says it’s part of a larger strategy and this will not be the last acquisition for the company, which he hopes to turn into a ‘luxury group’. With Kate Spade joining the brand, Coach will be the first New York-based house of luxury lifestyle brands says Coach CEO Victor Luis.
While brands like Kate Spade, Stuart Weitzman, and even Jimmy Choo fall short of the names in LVHM and Kering's portfolios, the budding empires of Michael Kors and Coach are battling for a different type of customer.
It is a guess on who will be the next acquisition in the war between Michael Kors and Coach to become the great American luxury conglomerate as Coach reportedly tried and failed to buy British heritage brand Burberry late last year but they continue with the fights.
