Louis Vuitton buys jeweller Tiffany Co in mammoth
LVMH, the world’s biggest luxury group, agreed.
The luxury brand giant behind Louis Vuitton is set replica louis vuitton bags to buy jewellery 1:1 replica handbags powerhouse Tiffany Co in deal worth about $24 billion. LVMH, the world’s biggest luxury group, agreed to nearly $200 per share for the company. The deal is expected to close mid next year. Image: AP
French luxury group LVMH has Fake Louis Vuitton Replica Bags agreed to buy New York jeweller Tiffany Co for $US16.2 billion ($A23.4 billion), adding a famed star to its portfolio that already boasts Louis Vuitton, Christian Dior and Bulgari.
LVMH said in a statement on Monday it would take over the 182 year old Tiffany and its 300 boutiques worldwide at $US135 ($A199) a share. The price tag is higher than the $US14.5 billion ($A21.4 billion) cash offer LVMH made last month.
Tiffany, known for its delicate jewellery, distinctive blue boxes and an Audrey Hepburn movie, says the deal will ensure its long term sustainability. The company is trying to transform its brand to appeal to younger and more digital shoppers and could use cheap louis vuitton bags from china an owner with deep pockets to help expand its business. Tiffany stock closed on Monday up more than 6 per cent in New York, while LVMH rose 2 per cent in Paris.
Tiffany’s French boutique on the Champs Elysees Discount Replica Louis Vuitton Bags , Paris. Picture: AP Photo/Michel EulerSource:AP
LVMH, led by billionaire Bernard Arnault, says the deal will strengthen its position in high end jewellery and in the US 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, with US President Donald Trump in attendance. LVMH said both companies boards approved the deal and hoped to finalise the takeover in 2020, subject to the approval of regulators and Tiffany shareholders.
knows how to preserve the strength and the identity of its brands, which is very important because in the luxury sector, beyond Designer Louis Vuitton Replica Handbags 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. is less of a household name in Europe than it is in the US but enjoys a high visibility boutique on the Champs Elysees Ave just down the street from Louis Vuitton flagship store.
In Paris, Mr 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 man to beat in the industry and further distanced LVMH from its rivals.
LVMH CEO Bernard Arnault is seen as the unelected president of the luxury world. Picture: AP Photos/Michel Euler, FileSource:AP
The offer comes as luxury goods companies have been wrestling with changing habits of shoppers who high quality designer replica handbags wholesale are increasingly buying online.
In addition, luxury companies are facing fears of an economic slowdown in China, a key area of business, while they already dealing with a slowdown in international tourism in the US.
Overall, the global market for personal luxury goods is healthy, reaching a record high of $US286.53 billion ($A422.9 billion) in 2018 a 6 per cent increase from the year before, according to consulting firm Bain Co. Jewellery, in particular, has been one of replica louis vuitton the top luxury growth categories https://www.dolabuy.su/ , enjoying a 7 per cent sales increase to more than $20 billion last year.
Under its CEO, Alessandro Bogliolo high quality designer replica handbags , Tiffany is trying to appeal to younger shoppers with more modern takes on jewellery. Earlier this year, it launched a men jewellery collection, and it increasing high quality designer replica handbags 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 shopping online and hunting for fashion deals. Tiffany has notably highlighted ways customers can personalise jewellery and started letting people trace the origin of their diamonds.
Still, Tiffany US sales have been stagnating as China slowing economy has weighed on spending by Chinese tourists who make up a substantial portion of luxury spending. The strong dollar has also made Tiffany products more expensive for consumers outside the US
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 Hong Kong Airport.
It also going after the Chinese online shopper. Tiffany launched a China e commerce site in August, its 14th e commerce enabled website globally. Tiffany had sales of $US4.4 billion ($A6.5 billion) in 2018, an increase of nearly 7 replica designer handbags per cent over 2017. LVMH reported 6.3 billion euros ($A10.2 billion) cheap louis vuitton bags from china uk in profits in 2018 on Discount Replica Louis Vuitton Bags 46.8 billion euros ($A76 billion) in sales.