BUSINESS OF FASHION: JIMMY CHOO PREPS FOR IPO
Jimmy Choo, the luxury shoe brand made popular by the stunningly glamorous and fictitious Carrie Bradshaw, announced their plans to pursue an initial public offering (IPO) next month on the London Stock Exchange. This news falls on the heels of Alibaba’s large scale IPO and Scotland’s rejection of independence, which will give rein to a slew of public listings in the UK.
Joh. A. Benckiser Holdings, parent company of Jimmy Choo, states that they plan to float roughly 25% of the company’s existing shares, which values the footwear brand at more than £700 million (US$1.14bn) at current exchange.
The strategy behind the deal caters to Choo’s desire to expand through Asia. Choo plans to add to its current 120 operating stores by approximately 10-15 units per year. CEO of Jimmy Choo, Pierre Denis, claims: “We have expanded into Asia, but we are just at the beginning. It continues to be an open space.”
Looking further for other potential opportunities to expand the brand through market growth includes considering budding franchise buyouts and joint ventures in rapidly fast-growing markets such as the Middle East and Singapore. Fully recognizing the brand’s current power and future potential, Denis stated that “Choo is operating in one of the fastest-growing segments” within the luxury retail market arena. He continues, “We are a very attractive business, and the only [luxury footwear] company that can go for an IPO right now.”
Choo hopes to climb through the ranks against other luxury shoe competitors such as Christian Louboutin and Manolo Blahnik—this IPO is the first step towards that goal.