Jimmy Choo celebrates soaring profits ahead of Michael Kors takeover
Bespoke British shoe designer strides into a new era with plans to enhance clients' experiences
Bespoke shoemakers Jimmy Choo have announced that the luxury brand’s profits have soared by almost three times, as it prepares for it’s takeover by US brand Michael Kors. The company, founded by renowned designer Jimmy Choo in 1996, saw its pre-tax profits for January-June reached £18.1million compared to £6.6million in 2016. Revenue was reported at £201.6million, a rise of 4.5 per cent.
Michael Kors announced its plans to acquire the British shoe brand earlier this year, negotiating a £896million ($1.2billion) deal. The new profit report shows the brand, which boasts famous fans including the late Diana, Princess of Wales and Kate, Duchess of Cambridge, Cindy Crawford and singer Beyoncé, has continued to sustain its growth through a strategy of diversification – particularly into men’s shoes.
"We are delighted with our performance during the period, having delivered growth in revenue and margins, despite challenging market conditions,” said chief executive Pierre Denis in a statement. "Our long-term growth strategy is to nurture the brand's unique DNA, to strive for excellence in business execution and to enhance client experience."
Consumer brand Michael Kors, best known for its popular bags and purses, is following in the footsteps of rival brand Coach, which recently acquired luxury brand Kate Spade to its portfolio. Chairman and CEO John Idol said: “We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
“The shared vision and distinctive appeal of these two iconic brands will provide an exciting platform to achieve global leadership in luxury retail,” said Jimmy Choo chairman Peter Harf. “A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders.”