The U.S. gem Tiffany moves under the LVMH flag
In late November 2019, the world’s biggest luxury retailer LVMH (sales of €46.8 billion in 2018 for a net margin of €6.4 billion at 14% of sales) secured a massive deal to purchase diamond specialist Tiffany & Co., taking over a global reputation and retail institution. This is the biggest acquisition ever for the Bernard Arnault’s Group, surpassing Dior Couture in 2017. In the fiscal year to July 2019, Tiffany posted sales of €3.95 billion (including 45% from Asia). Sales grew by 6.5 % year-on-year, despite a lower spending in the U.S. due to a strong dollar.
In terms of retail strategy, Tiffany made a strong bet on direct sales instead of multi-brand distributors, with more than 321 fully owned stores worldwide. “We have immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our brands,” said Bernard Arnault, Chairman of LVMH.