Jimmy Choo put their best foot forward
Next month the iconic footwear brand made famous by the likes of shows such as ‘Sex and the City’ and celebrities from Princess Diana to Jennifer Lopez announced plans to float on the London Stock Exchange next month.
Jimmy Choo’s original owners were, Tamara Mellon - accessories editor in the 90s for Vogue and Malaysian born designer himself Choo, now based in the UK. Over time however they have both been replaced by more experienced financial figures in the luxury goods industry.
Successful brand management over the years, along with a recognised excellence in craftsmanship, has seen this brand venture their line out to now include handbags, perfumes, sunglasses and jewellery. Part of JAB luxury, the company has more than 180 stores in over 30 countries and is present in the most prestigious department and specialty stores worldwide.
Estimations show that this news could see the famous footwear brand being valued at around £700 million. Pierre Denis, Jimmy Choo’s chief executive, believes the IPO is “An outstanding business operation in one of the fastest growing segments of the luxury market.” He said “Jimmy Choo is a clear success story with strong momentum and I am confident that our future as a public company can only extend our reputation and position in this attractive sector.”
The company founded in 1996 will float at least 25%of its equity on the London Stock exchange. With the company’s revenue up 6.1% and 7.7% in the last two years, Jimmy Choo has made clear that they are not in any hurry to expand on their growth rate. There will be no new shares issued to finance expansion, instead they will use this opportunity to take some of its own money off the market and put a proper valuation on its investments. Although fears amongst RSR management believe that going public will result in Jimmy Choo becoming ‘Overexposed’, which over time will see a reduction its exclusive prestige reputation it has currently maintained over the years. Furthermore analysts conclude that as long as Jimmy Choo does not dilute the core footwear they are known for and sticks to its chic roots, this move will serve them well. Burberry as a leading example stayed strong to its roots and brand when they made the decision to go public, this is a great illustration of how successful this business venture could potentially be for Jimmy Choo.