The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — French luxury conglomerate LVMH is close to acquiring American jewellery company Tiffany & Co. for $16.7 billion, according to a report Sunday by the Financial Times.
LVMH initially offered $14.5 billion for Tiffany, but the company said the offer was too low in early November, according to Reuters. The deal could be announced as early as Monday, the FT reported.
LVMH has much to gain from buying the storied American jeweller. The world's largest luxury conglomerate and Europe's second-most valuable company owns luxury fashion brands such as Louis Vuitton, Celine, and Christian Dior, as well as the beauty retail giant Sephora. Its market capitalisation surpassed €200 billion on the Paris Stock Exchange in early November.
Tiffany has over 300 stores around the world, but the company has had a difficult time in recent years. It's been updating its store experience, and recently hired former Barneys chief executive Daniella Vitale to reposition its brand identity. While the company continues to grow in China, it has struggled to win over Millennials and Gen-Z consumers in the West, as young shoppers move away from traditional occasion-based gifting and self-purchasing rises in popularity. In the first half of 2019, worldwide net sales at Tiffany decreased 3 percent to $2.1 billion.
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By joining LVMH's portfolio, Tiffany could tap into LVMH's extensive retail network, as well as its marketing and branding expertise.
Stay tuned to BoF for updates to this developing story.
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholder's documentation guaranteeing BoF's complete editorial independence.
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