HomeNEWSCoach to buy another luxury brand

Coach to buy another luxury brand

After successfully buying Kate Spade, Coach has put through another bid to widen its luxury sector. This time setting its focus on Jimmy Choo shoes.

After successfully buying Kate Spade, Coach has put through another bid to widen its luxury sector. This time setting its focus on Jimmy Choo shoes.

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In the possible ultimate luxury fashion collaboration, Coach has edged through as first in line to buy Jimmy Choo in an estimated one billion pound deal.

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Coach chief executive Joshua Schulman is a former boss of Jimmy Choo and gives the company an advantage over rival suitors.

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The popular shoe brand was put up for sale late last month, after the luxury fashion retailer said it decided to conduct a review of the various strategic options, “seeking offers” for the company.

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But Coach isn’t the only one in bid for the retailer, it has been reported by Telegraph Business that Michael Kors Holdings has also expressed interest in buying the company.

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Michael Kors was also tossed around as a potentially suitor for the sale of Kate Spade early this year, which was also bought out by Coach.

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Coach acquired Kate Spade — which has a market capitalization of US$2.37 billion — for US$2.4 billion in an all-cash deal.

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Coach failed to acquire Burberry last year after their 20 billion pound bid was denied.

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Jimmy Choo, which trades on the London Stock Exchange, has a market cap of 790 million pounds, or $1 billion at the current exchange rate. The brand’s 2016 sales were 364 million pounds, or $471 million, representing year-over-year growth of 14.5 percent.

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Jimmy Choo’s revenues soared 15 percent to 364 million pounds last year while earnings rose 16 percent to 59 million pounds.

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