Tiffany is latest jewel for French luxury group LVMH
PARIS French luxury group LVMH has agreed to buy New York jeweler Tiffany Co. for $16.2 billion, adding a famed star to its portfolio that already boasts Louis Vuitton, Christian Dior and Bulgari.
LVMH said in a statement Monday it will take over the 182 year old Tiffany and its 300 boutiques worldwide at $135 a share. The price tag is higher than cheap louis vuitton bags from china the $14.5 billion cash offer LVMH made last month.
Tiffany replica louis vuitton , known for its delicate jewelry, distinctive blue boxes and an Audrey Hepburn movie, says the deal will ensure 1:1 replica handbags its long term sustainability. The company is trying to transform its brand to appeal to younger and more digital shoppers, and could high quality replica handbags china use an owner with deep pockets to help expand its business.
Tiffany stock closed Monday up more than 6% in New York, while LVMH rose 2% in Paris. market. The purchase will help the French conglomerate compete with Gucci owner Kering Group and Cartier owner Richemont SA. With its purchase of Tiffany, LVMH is also making a big bet on China economy Tiffany has been expanding its presence in China with plans to build more stores there.
LVMH already owns 75 brands including Christian Dior, Fendi, and Givenchy as well as watchmaker Tag Heuer. Its flagship brand Louis Vuitton recently opened a handbag workshop in Texas dolabuy.su , with President Donald Trump in attendance.
LVMH said both companies boards approved the deal and hope to finalize the takeover in 2020, subject high quality designer replica handbags to cheap louis vuitton bags from china uk the approval of regulators and Tiffany shareholders.
LVMH how to preserve the strength and the identity of its brands, which is very important because in the luxury sector, beyond the product itself, the image is important, said Aude Latouche, a Paris based corporate mergers and acquisitions analyst at AL Corporate Advice. to be where they are now, LVMH definitely knows not only how to buy a brand, but also how to make it grow and flourish without touching the heart and the strength of the brand. but enjoys a high visibility boutique on the Champs Elysees Avenue just down the street from Louis Vuitton flagship store.
In Paris high quality designer replica handbags , Arnault is seen as the unelected president of the luxury world. One of Europe richest men, he ever present at VIP events and especially during the city Fashion Weeks, where LVMH brands hold a prominent place, and he and his children Delphine and Antoine are often parked in the front row. The Tiffany purchase is seen as confirming his status as the Designer Louis Vuitton Replica Handbags man to beat Designer Louis Vuitton Replica Handbags in the industry, and further distanced LVMH from its rivals.
The offer comes as luxury goods companies have been wrestling with aaa replica designer handbags changing habits of shoppers who are increasingly buying online.
Overall, the global market for personal luxury goods is healthy, reaching a record high of $286.53 (260 billion euros) in 2018 a 6% increase from the year before, according to consulting firm Bain Co. Jewelry in particular has been one of the top luxury growth categories, enjoying 7% sales increase to a little over $20 billion last year. Luxury sales in the Americas reached $88 billion (80 billion euro) last year, a growth rate of 5%, according to Bain Co. luxury market has been helped by a strong economy and overall luxury spending by local consumers. However, a strong dollar has curbed spending by tourists from Asia and other countries. luxury sales, excluding jewelry, have fallen 2.7% so far this year compared to a 3.1% increase in overall retail sales, according to MasterCard SpendingPulse, which tracks sales across all types of payments including cash and checks. Jewelry sales, however, have risen 2.6% so far this year.
Under its CEO, Alessandro Bogliolo, Tiffany is trying to appeal to younger shoppers with more modern takes on jewelry. Earlier this year, it launched a men jewelry collection, and it increasing its marketing to a more diverse customer base like same sex couples. It also been renovating its flagship store in Manhattan.
Tiffany has been putting plans in place to appeal to a younger group of customers who are more used to replica louis vuitton handbags shopping online and hunting for fashion deals. Tiffany has notably highlighted ways customers can personalize jewelry and started letting people trace the origin of their diamonds.
China sales in mainland China continue to be strong, according to Tiffany. To maintain its momentum, Tiffany is either opening or upgrading its flagship stores in three key metropolitan areas: Beijing, Shanghai and Hong Kong. It also expanding its airport duty free store networks. During the current quarter, it plans to open its first Tiffany store in a duty free zone in mainland China at the Beijing Airport with a partner. This past fall, it relocated and upgraded its directly owned store at the Hong Kong airport.
It also going after the Chinese online shopper. Tiffany launched a China e commerce site in August, its 14th Fake Louis Vuitton Replica Bags e commerce enabled website globally.
Tiffany had sales of $4.4 billion in 2018, fake louis bag an increase of nearly 7% over 2017. LVMH reported 6.3 billion euros in profits in 2018 on 46.8 billion euros in sales.