Monday, Jimmy Choo has recently announced that the investors of the luxury shoe maker supported the takeover by fashion line Michael Kors. The takeover is planned at a value of$1.2 billion.
With around 318 million votes, shareholders have shown a positive response over the potential buyout of Jimmy Choo by Kors. This has been revealed in the recent general meeting of the investors of the luxury footwear line.
As mentioned, Michael Kors announced its interest to buy Jimmy Choo this July. The move was done to counter Coach’s plan to buy Kate Spade in where these luxury companies aim to boost their weakening sales in the e-commerce generation by generating a new market to capitalize on.
Founded in 1990, Jimmy Choo established its brand in London by its forefather of the same name. Its shoes were worn by various celebrities such as Princess Diana, Sky Ferreira and Nicole Kidman.
As for Michael Kors, it is one of the famous fashion lines in affordable luxury on account of its handbag assortment. However, Kors is also one of the companies that have been struggling with deteriorating sales as retail trades in the modern generation weaken.
As a reaction to the sales decline, Kors has introduced a wider range of clothing line for both men and women. It also entered the e-commerce business as well.
“Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories. Michael Kors told reports. “We admire the glamorous style and trend-setting nature of Jimmy Choo designs.”
Michael Kors’ chart performance had a decent run recently. It has faced a bullish trend lately and since the 11th of September, it has continued indicating bullish candles. However, it struggled to gather bulls in its most recent trade.
Its Relative Strength Index has recently gone down from the overbought zone. At 68.88, Kors might take a lot of time going down (if poised to go down, which right now is unlikely.)
Lastly, its Coppock Curve has not shown signs of potential downtrends. While at 6.87, a buy would be advised as it is still in the positive region of the indicator.
FSM News is a daily updated news website about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. FSM News is here for you.