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BUSINESS Tuesday 26 November 2019
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Tiffany is latest jewel for French luxury group LVMH's crown

By ANGELA CHARLTON and ing secondhand luxury
RACHEL LERMAN items from places like The
Associated Press RealReal.com.
PARIS (AP) — French luxury In addition, luxury com-
group LVMH has agreed panies are facing fears of
to buy New York jeweler an economic slowdown in
Tiffany & Co. for $16.2 bil- China, a key area of busi-
lion, adding a famed star ness, while they're already
to its portfolio that already dealing with a slowdown in
boasts Louis Vuitton, Chris- international tourism in the
tian Dior and Bulgari. U.S.
LVMH said in a statement Overall, the global market
Monday it will take over the for personal luxury goods is
182-year old Tiffany and its healthy, reaching a record
300 boutiques worldwide at high of $286.53 (260 bil-
$135 a share. The price tag lion euros) in 2018 — a 6%
is higher than the $14.5 bil- increase from the year be-
lion cash offer LVMH made fore, according to consult-
last month. ing firm Bain & Co. Jewelry
Tiffany, known for its deli- in particular has been one
cate jewelry, distinctive of the top luxury growth
blue boxes and an Audrey categories, enjoying 7%
Hepburn movie, says the Sophie Forshaw, left, and Kelly Fenna, second from left, of Liverpool, England, stand in front of Tif- sales increase to a little
deal will ensure its long- fany's flagship store with their purchases, Monday, Nov. 25, 2019 in New York. over $20 billion last year.
term sustainability. The Associated Press Luxury sales in the Ameri-
company is trying to trans- cas reached $88 billion
form its brand to appeal to fany has been expanding is very important because In Paris, Arnault is seen as (80 billion euro) last year, a
younger and more digital its presence in China with in the luxury sector, be- the unelected president growth rate of 5%, accord-
shoppers, and could use plans to build more stores yond the product itself, the of the luxury world. One of ing to Bain & Co.
an owner with deep pock- there. image is important," said Europe's richest men, he's The U.S. luxury market has
ets to help expand its busi- LVMH already owns 75 Aude Latouche, a Paris- ever-present at VIP events been helped by a strong
ness. brands including Christian based corporate mergers — and especially during economy and overall lux-
Tiffany's stock closed Mon- Dior, Fendi, and Givenchy and acquisitions analyst at the city's Fashion Weeks, ury spending by local con-
day up more than 6% in as well as watchmaker Tag AL Corporate Advice. "So where LVMH brands hold sumers. However, a strong
New York, while LVMH rose Heuer. Its flagship brand to be where they are now, a prominent place, and he dollar has curbed spending
2% in Paris. Louis Vuitton recently LVMH definitely knows not and his children Delphine by tourists from Asia and
LVMH, led by billionaire Ber- opened a handbag work- only how to buy a brand, and Antoine are often other countries.
nard Arnault, says the deal shop in Texas, with Presi- but also how to make it parked in the front row. The Overall U.S. luxury sales, ex-
will strengthen its position dent Donald Trump in at- grow and flourish without Tiffany purchase is seen as cluding jewelry, have fallen
in high-end jewelry and in tendance. touching the heart and the confirming his status as the 2.7% so far this year com-
the U.S. market. The pur- LVMH said both companies' strength of the brand." man to beat in the indus- pared to a 3.1% increase in
chase will help the French boards approved the deal Tiffany is less of a house- try, and further distanced overall retail sales, accord-
conglomerate compete and hope to finalize the hold name in Europe than LVMH from its rivals. ing to MasterCard Spend-
with Gucci-owner Kering takeover in 2020, subject to it is in the U.S. but enjoys a The offer comes as luxury ingPulse, which tracks sales
Group and Cartier-owner the approval of regulators high-visibility boutique on goods companies have across all types of pay-
Richemont SA. With its pur- and Tiffany shareholders. the Champs-Elysees Ave- been wrestling with chang- ments including cash and
chase of Tiffany, LVMH is LVMH "knows how to pre- nue — just down the street ing habits of shoppers who checks. Jewelry sales, how-
also making a big bet on serve the strength and the from Louis Vuitton's flagship are increasingly buying on- ever, have risen 2.6% so far
China's economy— Tif- identity of its brands, which store. line. They're also purchas- this year.q