Before joining the LVMH portfolio of brands, Tiffany & Co. has taken one more moment to shine. The company announced that its sales for November and December set a new holiday record, rising just about 2 percent from a year earlier.
“In the midst of a worldwide pandemic and its dynamic impacts, these all-time high preliminary holiday period sales results, which follow a strong third quarter, reflect the successful convergence of our multiyear sales strategies with respect to the Chinese mainland (greater than 50 percent increase from prior year), eCommerce (greater than 80 percent increase from prior year), increasing average unit retail prices and accelerating product innovations,” said Alessandro Bogliolo, chief executive officer at Tiffany & Co.
Bogliolo noted that net sales in the Asia-Pacific region increased by an astounding 20 percent, while sales in Japan increased by 8 percent. The Americas and Europe both, however, witnessed a decline in sales, with sales in the Americas plummeting by roughly 5 percent and in Europe by 8 percent.
“This year has certainly stress-tested the corporate strategies we set in 2017 to strengthen the brand and win in the highly competitive global luxury jewelry market,” said Bogliolo.
Both Bogliolo and Reed Krakoff, chief artistic director at Tiffany & Co., have worked vigorously to revamp the luxury jewelry company, which dates back to 1837. The American company originally got its start when Charles Lewis Tiffany opened his jewelry store in New York.
With its iconic Blue Book, its dedicated hue, its famed boxes and its relevance in Truman Capote’s “Breakfast at Tiffany’s” starring Audrey Hepburn, Tiffany & Co. has become more than a jeweler; the luxury brand has become an American icon.
Bogliolo and Karkoff succeeded on capitalizing on the company’s rich history and its iconic status as they set their eyes toward expanding into China, which was later prove attractive to LVMH.
“We are so proud of all the employees at Tiffany whose sound strategic decisions and collective actions allowed the company to persevere in this challenging and ever-changing year and raise the standard of stewardship for a global luxury jeweler,” said Roger Farah, Chairman of the Board of Tiffany & Co.
“We congratulate and thank Alessandro for the remarkable achievement of elevating and modernizing the brand over the past three years, and the extraordinary management team and all the employees for a job superbly done.”
At the end of last year’s holiday season, Tiffany & Co. and LVMH finally concluded their deal.
During a shareholders meeting held on December 30, 99 percent of the shareholders voted in favor of the new agreement, which was originally announced in October.
Under the original deal late last year, LVMH had agreed to purchase the American jeweler for $16.2 billion, marking the largest luxury acquisition. The new deal, however, shaves off $420 million from the original asking price bringing the deal valuation to $15.8 billion.
Prior to finalizing the deal, acquisition talks between the two companies had gone sour as COVID-19 had greatly impacted the American high-end jewelry retailer’s business. Tiffany & Co. saw its sales drop by 44 percent during this time, ultimately casting doubts on whether LVMH had overpaid for the deal. LVMH CEO Bernard Arnault looked to lower the buying price and then eventually pulled out of the deal.
Under the new agreement, Tiffany & Co. will officially no longer be a publicly-traded company. Instead, it will become an indirect wholly-owned subsidiary of LVMH.