“Michael Kors follows the path of Coach — and again, on steroids,” said Luca Solca, a luxury goods analyst at Exane BNP Paribas. Mr. Solca said that after “a meteoric rise and spectacular crash,” American luxury brands like Michael Kors were looking to “recycle cash into other brands.”
Jimmy Choo put itself up for sale in April as the Reimann family, the reclusive German consumer goods billionaires who had owned it, looked to reduce their luxury holdings. The shoemaker announced record annual revenue and profits in March, aided by robust sales in Asia and a fillip from a weaker pound, which increased the value of overseas revenue.
After the transaction, Jimmy Choo will operate under its existing management team, including the chief executive, Pierre Denis. It has more than 150 stand-alone stores as well as a presence in many of the world’s top department stores.