By Samantha Conti. Source: WWD.
LONDON — Jimmy Choo is undertaking a strategic review, and is seeking offers from potential buyers.
The company’s board said in a statement to the London Stock Exchange on Monday that it has decided to conduct a review of “the various strategic options open to the company” to maximize value for its shareholders. It confirmed it is seeking offers.
The company’s shares climbed 7.6 percent to 1.81 pounds, or $2.32, in midmorning trading, following the announcement.
Jimmy Choo said it has discussed the strategic review process with its majority shareholder, JAB Luxury GmbH. In a separate statement, JAB Luxury confirmed that it is “supportive” of the process.
Choo said it is not in receipt of any approaches at this time. The company is working with Bank of America Merrill Lynch and Citi, and said interested parties should contact them.
In a separate statement, JAB confirmed it holds 67.66 percent of Jimmy Choo’s issued share capital, and that it does not intend to comment further until a decision on possible strategic options has been made.
Jimmy Choo reported a 14.5 percent uptick in revenue to 364 million pounds, or $495 million, for the year ended Dec. 31. At constant exchange, revenue edged up 2 percent, fueled by growth in Asia and in men’s footwear.
Choo said sales trends have been “improving” across all regions, and that the brand is well-positioned to take advantage of a stronger marketplace in 2017.
In 2016, the main driver of revenue growth was shoes, which represented 75 percent of sales, with the balance from accessories and licensing.
The company said men’s shoes and accessories are its fastest-growing category, and now account for around 9 percent of revenue. Jimmy Choo has extended its Safilo license until 2023, and scheduled the launch of men’s sunglasses and eyewear for 2018.