Sportswear Holdings to exit Michael Kors via IPO

Other shareholders including Michael Kors CEO John Idol and partner Lance LePere are selling their stakes alongside the investment firm, which bought 85% of the luxury lifestyle company in 2003. At the time the firm was valued at $100 million by trade journal Daily News Record. Chou and Stroll currently hold 51.9% of Michael Kors and intend to sell 25,931,249 of their shares in the floatation to bring in earnings of up to $493 million before taxes.

The Hong Kong-based business has taken an active role in an industry which has made a comeback after the economic turmoil of 2009, and 2011 is expected to be close as another successful year, especially for watchmakers, luxury hotels, fashion and leather goods groups.

Michael Kors, which is scheduled to begin trading on the New York Stock Exchange on Thursday, will float 41.7 million shares priced at $17-$19 each. This values the firm at up to $3.63 billion - or 4.5x its 2011 turnover of $803.3 million. This figure represents a massive increase on its 2007's revenues of $211 million. Net profits have also risen by 1,950% over the past four years.

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• Topics
• Greater China
• Consumer
• Exits
• IPO
• Consumer
• Exit