Michael Kors, which has pitched itself as an "affordable luxury" brand, is hoping to improve its fortunes with the acquisition of Jimmy Choo, a high-end shoe brand that targets an upmarket consumer.
Michael Kors has been struggling over the last few years. The company's strategy of discounting has backfired, severely hurting the brand's image, and causing its share price to plummet by 20% in 2017. It is now planning to shutter as many as 125 stores. Jimmy Choo, on the other hand, has been thriving, largely due to strong sales in Asia.
Michael Kors is following in the footsteps of Coach, another "affordable luxury" brand which recently acquired the high-end shoe brand Stuart Weitzman and accessories brand Kate Spade in an effort to better compete.
Read more in the New York Times. ES