Mergers and acquisitions
On Tuesday, fashion brand Michael Kors said it has agreed to buy upscale shoemaker Jimmy Choo for $1.17 billion in cash, in a bid to shore up its narrowing profits amid slow growth in its core handbag business. Jimmy Choo has been up for sale since April, when European firm JAB Holding put it on the market. Michael Kors and other fashion brands are trying to come up with strategies to get U.S. consumers to pay full price for luxury handbags, as customers become accustomed to steep discounts and women are switching to smaller purses. In May, when Michael Kors unveiled a turnaround plan, rival Coach agreed to buy Kate Spade for $2.4 billion. The Michael Kors-Jimmy Choo deal requires shareholder approval.