Tiffany shine contradicts LVMH deal tantrum

Post by **PinkDiamond** » Sun Aug 01, 2021 5:51 pm

Haha! Remember when LVMH tried to get out of the deal with Tiffany, saying they were losing money and demanding they reduce the selling price they had agreed on? Well the chickens have come home to roost and Tiffany has become very lucrative for LVMH. Arnault deserves a heaping helping of crow. :lol:

Tiffany shine contradicts LVMH deal tantrum
Lisa Jucca

Chairman and CEO of LVMH Bernard Arnault attends the global tech conference Viva Technology at the Elysee Palace in Paris, France, February 21, 2017. REUTERS/Michel Euler/Pool

"MILAN, July 27 (Reuters Breakingviews) - Tiffany is sparkling in LVMH’s (LVMH.PA) crown. The famous U.S. jeweller, which tycoon Bernard Arnault added to his collection following a bitter $16 billion takeover last year, has bounced back from the pandemic and already appears to be more profitable than in 2019. The performance contradicts the French luxury giant’s attempt to wriggle out of the deal last year. Future LVMH targets will take notice.

After declining to complete its biggest-ever purchase in September, the owner of Dior and Givenchy argued in a Delaware court that the pandemic had “devastated” Tiffany’s business, said that management had mishandled the crisis, and accused the jeweller’s board of having made “a series of horrible decisions”, including paying dividends while sales and earnings were plummeting. The dispute ended in October when Tiffany accepted a $430 million reduction in LVMH’s original offer.

The 352 billion euro French giant has clearly put the Covid-19 emergency behind it. Helped by the continued success of its flagship Louis Vuitton brand, sales jumped 53% on a comparable basis to 28.7 billion euros in the first half of the year. That’s 11% better than in 2019, before the pandemic. Sales in LVMH’s jewellery and watches division, which includes Italian jeweller Bulgari, reached 4 billion euros.

Tiffany also appears to be off to a good start. The maker of iconic diamond rings made a profit from recurrent operations of ... "
https://www.reuters.com/breakingviews/t ... 021-07-27/