Michael Kors Holdings Ltd.’s purchase of Jimmy Choo is a pathway into the luxury men’s shoe department. Data shows that retail sales of men’s designer shoes is growing faster than women’s.
As part of the $1.2 billion deal, Michael Kors KORS, +0.06% said it sees the opportunity to grow Jimmy Choo into a $1 billion brand, better position itself in the luxury footwear space, and expand in luxury accessories. Michael Kors also has its eye on men’s footwear, saying in the deal announcement that Jimmy Choo is adding a twist to classic shapes in men’s evening shoes.
Retail sales of men’s designer footwear have grown faster than women’s designer shoes over the last three years, according to data provided by Euromonitor International, a market research provider. Still, women’s luxury footwear is the bigger market, generating $17.7 billion in 2016. Men’s luxury shoes generated $9.6 billion in global retail sales last year.
More broadly, the purchase is a way for Michael Kors to maintain its luxury status. The company is pulling back from the wholesale channel to better control discounting and merchandise availability, both threats to brand health.