Jimmy Choo Becomes First Luxury Shoe Brand to Go Public

According to Fashionista, this morning (October 17) Jimmy Choo became the first luxury shoe company to go public, listing about a quarter of its shares on the London Stock Exchange for $2.25, valuing the company at about $874 million, $63 million more than Labelux paid to acquire the company in 2011.

Founded in 1996, the company was started by Choo, who was making bespoke shoes in the East End of London, and Tamara Mellon, Vogue's former accessories director. The brand has since become quite popular on television and in movies, being featured in Sex and the City and The Devil Wears Prada.

Choo chose a risky time to stage a public offering. Shares of other luxury companies like Burberry, LVMH and Mulberry have taken a hit recently, after Burberry and Mulberry warned that they expected difficult times ahead. A study released by Bain & Company last week estimated that luxury sales would grow by 5 percent this year, down from 7 percent in 2013, and that luxury sales in China would actually decline by 1 percent.

According to The New York Times, Choo's niece, Sandra Choi, has served as creative director of the label since its inception. Choo left the company in 2001 and Mellon followed in 2011 shortly after Labelux's acquisition. The brand was one of the first to court Hollywood in a serious way, outfitting stars before the Oscars with shoes dyed to match their dresses in the late '90s. Since then, styles have become more commercial, and the Jimmy Choo label is not as covetable as it once was, though sales are still growing.

"Today's announcement marks an important milestone for Jimmy Choo and recognizes not only the appeal of our high-quality products, but also confidence in our ability to outperform the luxury shoe market," Pierre Denis, the chief executive of the shoe brand, said in a news release.