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Jimmy Choo Steps Closer To A Sale

UK-based luxury footwear retailer Jimmy Choo has put itself up for sale in a move to maximize the brand’s shareholder value.

Jimmy Choo will conduct a review of its various strategic options going ahead, although there is no certainty that an offer will be made. The company discussed the strategic review process with its majority shareholder, investment group JAB Luxury, which has confirmed its support of the process. JAB owns 68% of Jimmy Choo.

Jimmy Choo appears to be taking a route similar to brands such as Kate Spade and Burberry, both of which  have been tied to potential sales. But while many luxury brands have been dealing with a difficult environment marked by decreased product demand, Jimmy Choo reported a 14.5% uptick in revenue to $495 million in 2016, as well as a 15.7% rise in annual core earnings.Men’s shoes remain its fastest-growing category, accounting for 9% of revenue.

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The Board of Jimmy Choo can alter or terminate the strategic review process at any time, and also has the power to reject any approach or terminate discussions with any interested party.

JAB Luxury also is reviewing its ownership of Swiss luxury footwear and accessories maker Bally International, meaning a sale for that business is on the table.

JAB Luxury’s parent company, JAB Holdings, which acquired eatery Panera Bread for $7.5 billion in early April, wants to sell its stake in luxury businesses to focus more on its core of food and coffee investments. Despite this shift in focus, however, JAB intends to retain its investment in beauty products maker Coty.

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