Michael Kors Scoops Up Jimmy Choo for $1.2B

Shoes and handbags go together like … well, Jimmy Choo and Michael Kors, now that the latter has agreed to purchase the former for $1.2 billion, the Wall Street Journal reports. Michael Kors is looking to bolster its business with the luxury shoe brand as sales of its own handbags falter, with a Customer Growth Partners analyst noting just a 2% recent growth in the handbag market overall, as opposed to 15% growth six years ago. Reuters notes that Michael Kors has lost 65% of its market value since 2014.

Michael Kors' sales may have taken a hit by the company permitting its product to be sold at a discount in outlets and department stores, making it harder to command full price in its own. The New York Times notes a big drop in shopping mall traffic as another possible contributing factor to lethargic sales. Jimmy Choo CEO Pierre Denis is expected to stay on in his current role.