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 — Tiffany & Co said on Thursday sales have been rising through October with its business in the midst of a rebound, as the jeweller looked to counter claims from French luxury giant LVMH that its prospects were "dismal."
The companies have been locked in a heated legal battle since last month after LVMH said it would walk away from its $16 billion deal to buy Tiffany, citing an official foreign ministry request to delay the closing of the transaction and worsening business conditions at Tiffany because of the Covid-19 pandemic.
Tiffany said its sales in Mainland China were "extremely strong" and its business was recovering in the United States, boosted by strong online demand.
The company said fourth-quarter earnings are expected to increase by mid-to-high single digit percentage from a year earlier.
By Uday Sampath; editor: Sriraj Kalluvila and Shounak Dasgupta.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.
The group’s flagship Prada brand grew more slowly but remained resilient in the face of a sector-wide slowdown, with retail sales up 7 percent.
The guidance was issued as the French group released first-quarter sales that confirmed forecasts for a slowdown. Weak demand in China and poor performance at flagship Gucci are weighing on the group.
Consumers face less, not more, choice if handbag brands can't scale up to compete with LVMH, argues Andrea Felsted.