I enjoy Tiffany jewelry. I like their minimalist elegance with some classic styles. But them I'm not a big jewelry person and what I do have tends toward the understated - so Tiffany is in my wheelhouse for style. I also like that they're an American brand. Personally I'd prefer they stay an American brand and find ways to innovate within that model. But I'd rather LVMH buy them than have them go under so I really don't know how to feel about this potential acquisition. I guess I just hope it works out well for Tiffany.
LVMH buying Tiffany
- Thread starter vilette21c
- Start date
TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others
This was an unsolicited offer. They are still doing well and made a nice profit and make more per square foot than most retailers. Tiffany's doesn't need to be bought. I love Tiffany's classic pieces and breakfast at tiffanys is my favorite movie of all time. I really hope they don't sell to
LVMH especially when they don't need to and are making a profit!
Yup bc Tiffany's going under would be so sad!!! I would want anything to save them if that was the case too, but thankfully it's not!
Tiffany’s doesn’t just do minimalist jewellery - do a search for the Jazz piece one of our members recently purchased. They have all kinds of high end complex pieces, that just isn’t what is popular right now with the masses.
And I think they got out of stained glass because it is expensive, labour intensive and so few people want it now. Even fine china is in low demand. They are following the market.
And I think they got out of stained glass because it is expensive, labour intensive and so few people want it now. Even fine china is in low demand. They are following the market.
Tiffany has a diverse jewelry collection, including many minimalist "every day wear" pieces, but I am baffled at hearing that people think of them as an exclusively minimalist jeweler. Maximalist cases in point from recent years:
As for the LVMH question, I would stop buying from them during the ownership because I'm not a fan of luxury conglomeration or oligopolies of any kind. Also, in my mind, the U.S. made LV bags are not true French luxury pieces to me, and Tiffany produced under French ownership would not be true American luxury pieces to me. LVMH acquired Bvlgari and the prices have gone through the roof. LV prices have gone through the roof, and even if their new designs are more profitable, many are quite homely and pandering to my eyes. I don't like Arnault and I don't trust him not to ruin Tiffany. I'll gladly skip on the T&Co. x Supreme / Bape / Reebok / Banksy / Whatever he would cook up.
As for the LVMH question, I would stop buying from them during the ownership because I'm not a fan of luxury conglomeration or oligopolies of any kind. Also, in my mind, the U.S. made LV bags are not true French luxury pieces to me, and Tiffany produced under French ownership would not be true American luxury pieces to me. LVMH acquired Bvlgari and the prices have gone through the roof. LV prices have gone through the roof, and even if their new designs are more profitable, many are quite homely and pandering to my eyes. I don't like Arnault and I don't trust him not to ruin Tiffany. I'll gladly skip on the T&Co. x Supreme / Bape / Reebok / Banksy / Whatever he would cook up.
It sound like Tiffany wouldn’t mind a buyout if they can get a higher offer. I think they they are testing out how far LVMH would go to bid out the business.
Off topic but those pearl rings are gorgeous and I’m not usually into pearls but I’d buy those.
Tiffany Wants LVMH to Up Its Offer, Says Report
https://www.jckonline.com/editorial-article/tiffany-wants-lvmh-up-offer/
https://www.jckonline.com/editorial-article/tiffany-wants-lvmh-up-offer/
LVMH reaches deal to acquire Tiffany for $16.3 billion
https://www.cnbc.com/2019/11/24/lvmh-reaches-deal-to-acquire-tiffany-for-16point3-billion.html
LVMH reaches deal to acquire Tiffany for $16.3 billion
The boards of the luxury firms have been discussing a potential deal since last month, and will meet on Sunday to approve the deal, sources tell CNBC’s David Faber.
An agreement could be announced as soon as Monday.
Shares of Tiffany, the iconic New York-based jeweler, have risen over hopes of a higher priced deal. Shares closed on Friday at $125.51. They had traded at about $140 in the middle of last year.
Jewelry was one of the strongest performing areas of the luxury industry in 2018, according to consultancy Bain & Co, which forecast that comparable sales in the $20 billion global market were set to grow 7% this year.
Tiffany, founded in New York in 1837 and featured in the 1961 movie “Breakfast at Tiffany’s,” has struggled with growth over the last several years. It experienced falling annual sales and profit since 2015, before a revenue turnaround in 2017.
The jeweler has also pushed an expansion into China, but experienced a decline in sales in the U.S. and Asia from factors like the U.S.-China trade war.
Analysts at Credit Suisse and Cowen say Tiffany could be worth roughly $140-$160 per share.
Paris-based LMVH has about $50 billion in annual revenue from brands including Louis Vuitton and Dom Perignon. Acquiring Tiffany would give LVMH exposure to the bridal and diamond category and to more U.S. luxury customers.
LVMH plans to keep the Bulgari and Tiffany’s brands separate if the deal materializes. The company’s primary rivals, including Gucci-owner Kering and Switzerland’s Richemont, which owns Cartier, are also increasing their exposure to high-end jewelry.
The Financial Times first reported news that LVMH and Tiffany reached a deal.
https://www.cnbc.com/2019/11/24/lvmh-reaches-deal-to-acquire-tiffany-for-16point3-billion.html
LVMH reaches deal to acquire Tiffany for $16.3 billion
- Bulgari owner LVMH has reached a deal to buy Tiffany & Co. at $135 a share, or $16.3 billion, according to sources familiar with the matter.
- The boards of the luxury firms have been discussing a potential deal since last month, and will meet on Sunday to approve a final plan.
- Shares of Tiffany, the iconic New York-based jeweler, have risen over excitement of a higher-priced deal. Shares closed on Friday at $125.51, and traded at about $140 in the middle of last year.
The boards of the luxury firms have been discussing a potential deal since last month, and will meet on Sunday to approve the deal, sources tell CNBC’s David Faber.
An agreement could be announced as soon as Monday.
Shares of Tiffany, the iconic New York-based jeweler, have risen over hopes of a higher priced deal. Shares closed on Friday at $125.51. They had traded at about $140 in the middle of last year.
Jewelry was one of the strongest performing areas of the luxury industry in 2018, according to consultancy Bain & Co, which forecast that comparable sales in the $20 billion global market were set to grow 7% this year.
Tiffany, founded in New York in 1837 and featured in the 1961 movie “Breakfast at Tiffany’s,” has struggled with growth over the last several years. It experienced falling annual sales and profit since 2015, before a revenue turnaround in 2017.
The jeweler has also pushed an expansion into China, but experienced a decline in sales in the U.S. and Asia from factors like the U.S.-China trade war.
Analysts at Credit Suisse and Cowen say Tiffany could be worth roughly $140-$160 per share.
Paris-based LMVH has about $50 billion in annual revenue from brands including Louis Vuitton and Dom Perignon. Acquiring Tiffany would give LVMH exposure to the bridal and diamond category and to more U.S. luxury customers.
LVMH plans to keep the Bulgari and Tiffany’s brands separate if the deal materializes. The company’s primary rivals, including Gucci-owner Kering and Switzerland’s Richemont, which owns Cartier, are also increasing their exposure to high-end jewelry.
The Financial Times first reported news that LVMH and Tiffany reached a deal.
LVMH nears deal to buy Tiffany after raising offer to $16.7bn
https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a
LVMH is set to buy Tiffany & Co for $16.7bn, after the US jeweller convinced Bernard Arnault’s luxury group to raise its takeover offer by about $600m to clinch an agreement, according to people close to the deal. The deal, one of the biggest in the career of Mr Arnault, amounts to a bet by Europe’s richest man that his group can restore the brand to its former glory as a top name in global luxury. The boards of both companies are meeting on Sunday to approve the latest all-cash bid from LVMH for the US business known for its diamond engagement rings. At $135 a share, the improved takeover offer values Tiffany at $16.3bn before including net debt of $350m. An agreement could be unveiled as soon as Monday, the people said, although they cautioned that there were still a few more hurdles to overcome before any transaction was signed off. Tiffany, founded in 1837, achieved famed status with its trademark blue boxes and from the film adaptation of the Truman Capote novella Breakfast at Tiffany’s starring Audrey Hepburn in 1961. But that allure has faded in recent years. Several advisers working with luxury companies questioned the logic behind a deal, asking why would Mr Arnault buy a business that had fallen off the list of top-tier brands. Beyond appearances, Tiffany’s business has also had to cope with the impact of lower spending by tourists and a strong US dollar. For LVMH, however, the acquisition would deepen its presence in jewellery, allowing it to compete in the category more closely with the likes of Switzerland’s Richemont in one of the fastest-growing categories in the personal luxury goods sector. Tiffany, which has a considerable footprint in the US and remains popular with Asian consumers, would sit in a portfolio that includes Bulgari, the Italian jeweller, which Mr Arnault acquired in 2011 for $5.2bn. LVMH’s broader stable of brands include Louis Vuitton, Dior and Sephora. The two sides have been in talks for weeks since it was revealed that LVMH tabled its first offer at $120 a share in October. That bid was delivered in conjunction with Mr Arnault’s arrival to the US to visit a new LVMH factory in Texas with President Donald *****, where Louis Vuitton is producing “Made in the USA” handbags. Last week, the French group increased its offer to $130 a share and was granted access to Tiffany’s books to conduct due diligence. The company’s share price closed last Friday in New York at $125.51. As recently as August, the stock was trading close to $80 a share. For the full year to the end of July, Tiffany reported revenues of $4.4bn, down nearly 1 per cent from a year ago, and net income of $561m, an increase of 13 per cent. The company employs over 14,000 staff, according to Capital IQ. Tiffany and LVMH did not immediately respond to a request for comment.
https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/c7a7b230-0ec2-11ea-a7e6-62bf4f9e548a
LVMH is set to buy Tiffany & Co for $16.7bn, after the US jeweller convinced Bernard Arnault’s luxury group to raise its takeover offer by about $600m to clinch an agreement, according to people close to the deal. The deal, one of the biggest in the career of Mr Arnault, amounts to a bet by Europe’s richest man that his group can restore the brand to its former glory as a top name in global luxury. The boards of both companies are meeting on Sunday to approve the latest all-cash bid from LVMH for the US business known for its diamond engagement rings. At $135 a share, the improved takeover offer values Tiffany at $16.3bn before including net debt of $350m. An agreement could be unveiled as soon as Monday, the people said, although they cautioned that there were still a few more hurdles to overcome before any transaction was signed off. Tiffany, founded in 1837, achieved famed status with its trademark blue boxes and from the film adaptation of the Truman Capote novella Breakfast at Tiffany’s starring Audrey Hepburn in 1961. But that allure has faded in recent years. Several advisers working with luxury companies questioned the logic behind a deal, asking why would Mr Arnault buy a business that had fallen off the list of top-tier brands. Beyond appearances, Tiffany’s business has also had to cope with the impact of lower spending by tourists and a strong US dollar. For LVMH, however, the acquisition would deepen its presence in jewellery, allowing it to compete in the category more closely with the likes of Switzerland’s Richemont in one of the fastest-growing categories in the personal luxury goods sector. Tiffany, which has a considerable footprint in the US and remains popular with Asian consumers, would sit in a portfolio that includes Bulgari, the Italian jeweller, which Mr Arnault acquired in 2011 for $5.2bn. LVMH’s broader stable of brands include Louis Vuitton, Dior and Sephora. The two sides have been in talks for weeks since it was revealed that LVMH tabled its first offer at $120 a share in October. That bid was delivered in conjunction with Mr Arnault’s arrival to the US to visit a new LVMH factory in Texas with President Donald *****, where Louis Vuitton is producing “Made in the USA” handbags. Last week, the French group increased its offer to $130 a share and was granted access to Tiffany’s books to conduct due diligence. The company’s share price closed last Friday in New York at $125.51. As recently as August, the stock was trading close to $80 a share. For the full year to the end of July, Tiffany reported revenues of $4.4bn, down nearly 1 per cent from a year ago, and net income of $561m, an increase of 13 per cent. The company employs over 14,000 staff, according to Capital IQ. Tiffany and LVMH did not immediately respond to a request for comment.
I'm really sad about this. I read somewhere it was a done deal already for $16.3B.
I'm cautiously optimistic. I wish Tiffany remained a US brand but I'm hopeful it retains its NY/US routes while reaping the benefits of a larger sales and marketing infrastructure.
Same here.