Business News September 2017

TFL publishes every month business news with focus on the leather industry, on a worldwide basis.

Michael Kors acquires Jimmy Choo

Fashion group Michael Kors has acquired the luxury shoes brand Jimmy Choo for roughly one billion Euros. The company, listed on the stock exchange, predominantly belonged to the Holding JAB of the German billionaire family Reimann that wants to focus on other consumer sectors in future. Jimmy Choo had offered itself for take over in April. According to Michael Kors, Jimmy Choo’s operative business remains unchanged. The management with CEO Pierre Dennis will remain as well. In the past year Jimmy Choo generated 364 million Pounds, i.e. almost 15 percent more than previous year.

Vietnam increases shoe exports

Vietnam has increased its shoe exports in the first half year 2017 by eleven percent compared to previous year. According to the Vietnamese customs authorities the shoes were worth 8.7 billion US Dollars. Most important export country is still the USA (1.99 billion Dollars/+13%) followed by the European Union (1.8 billion Dollars/+10%) and China with 418 million US Dollars (+30%).

Kavat achieves record turnover and moves into new production premises

Swedish shoe manufacturer Kavat has achieved a record turnover of 11.5 million Euros in 2016. The company now invests into a new bigger production site in Bosnia and Herzegovina. As of July the 160 employees gradually moved from the former buildings in Travnik to the modern 5,000 square metres big plant located in Novi Travnik a mere 10 kilometres away – new machinery and sewing included. Thus, Kavat is expanding the company own shoe manufacturing and continues to focus on a controlled production cycle, local suppliers and short transportations. The new site offers capacities for the production of 500,000 pairs per year, which corresponds to an increase of 66 percent compared to the actual production capacity. “This enables us to manufacture a bigger part of our products on our own site even with regards to the rising demand in sustainably manufactured shoes”, Managing Director Magnus Ericson comments. “We are working with local suppliers from Bosnia and Herzegovina, Croatia and Italy and keep the transportation routes for materials and elements short.”

Gallery Shoes fully booked

Gallery shoes, fully booked and expanded by two additionally installed lightweight building constructions for its duration, opens the doors for its first edition on Böhler area in Dusseldorf from the 27th to the 29th August. “To begin with we have fully reached our target for the event with 500 brands exhibited”, Ulrike Kähler, Project Director Gallery Shoes, summarises. “Visitor registrations are also running well.” The presentations are displayed on roughly 200 concept booths and more than 60 own booth constructions featuring the zones Premium, Contemporary & Urban, Comfort and Kids.

Görtz continues expansion course

Within the scope of its expansion strategy Görtz is currently holding talks for further sites. Certain are a big store move to the Upper West Complex in Autumn close to the Kurfurstendamm in Berlin in Autumns as well as an opening in the Munich shopping centre OEZ in mid-September. End of May already a shop with a unique store concept has been opened next to the former Carsch House in Dusseldorf. The shop comprising 260 square metres is inspired by pop up stores. Numerous seating and lounge elements as well as eye-catching illustrations and prints emphasize the trendy atmosphere. The store concept includes cubes, roller containers and counters for the presentation of the brands. The range comprises ladies’ and men’s shoes as well as accessories. A children’s range has been dispensed with.

Leder & Schuh again achieves profit

The Austrian leather and shoes group is operating again in the black. As it results from the annual accounts published today, a profit of 16.4 million Euros has been achieved in 2016. In previous a loss of 6.4 million Euros was disclosed. Thus the group has achieved a profit for the first time since 2010. The turnover of the business group with the distributions lines Humanic, Shoe4You and Stiefelkonig declined by 13 percent to 355 million Euros. Reasons stated for the decline were the selling of the 54 Shoe4You and Jello shops in Germany to the business group Kienast as well as fewer shops in total. In future the enterprise wants to focus on the distribution lines Humanic as well as Shoe4You in Austria. In contrast the group wants to definitely separate from the distribution line Stiefelkonig. The last four stores in Vienna, Graz and Wals are to be either closed or transferred into Humanic stores. While in 2016 one Humanic shop opened and eight Stiefelkonig and Shoe4You shops transferred to Humanic, all other distribution lines mostly showed closures or sales.