Michael Kors wants to buy over Jimmy Choo
Both companies declined to verify the reports
Luxury fashion brand Michael Kors is reportedly looking to buy over Jimmy Choo. According to WWD, after its inconsistent efforts to purchase Kate Spade have failed (thanks to Coach), the company is now eyeing the footwear and accessories brand to expand its horizons.
Last year, the company's sales fell to 3.3 billion and acquiring Jimmy Choo, a brand that has a higher price point, could give it the leverage it needs to appeal to more customers.
"Our number-one capital allocation priority is to repurchase shares," said John Idol, Michael Kors chairman and chief executive officer, to WWD. "Again, with our multiple being consistently below where our peer group is and us still being much more profitable than many of them, we think…that that's really the best investment for us to make. If we can utilise the company – the management team's expertise and certain other of our capabilities internally to create value for our shareholders, we will look at that."
"We are actively looking at a number of different things, and if it's right for our company and our management's ability to execute and create value for our shareholders then we will take advantage of it," he added.
Both Michael Kors and Jimmy Choo have declined to verify the reports.