Michael Kors went shoe shopping and has bought Jimmy Choo luxury shoe maker for USD$1.2 billion.
Michael Kors said this week it has agreed to purchase the luxury shoemaker for approximately $1.2 billion, adding a coveted global brand to the U.S. retailer's stable as its own handbag and accessories sales suffer.
Michael Kors is in the process of closing 100 to 125 of its standalone stores, renovating another 100-plus stores and doubling down on more innovative designs.
In a goal to be a more exclusive brand, Michael Kors is also pulling its bags from department stores and lowering stock offerings.
The purchase of Jimmy Choo adds well to the brands luxury side and give it a good foothold in the high-fashion shoe market place.
Jimmy Choo will continue to be run by CEO Pierre Denis, who has held the top job since 2012. The shoe retailer has over 150 independent standalone stores, which will continue to operate as usual under the new management.
The move comes on the heels of Coach's $2.4 billion acquisition of Kate Spade, which was another bid by a U.S. retailer to accelerate growth by picking up a likable brand with a younger following.
Coach had also put in a bid earlier on for the luxury shoe retailer, but was outbid by Michael Kors early into the sale stages.
Shares of Michael Kors edged up one percent in pre-market trading, while shares of Jimmy Choo surged 17 percent in London.