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. (More Michael Kors stories.)