Shanghai,China-Oct.7th 2022: large Tiffany Co. flagship store at Huaihai Road with many walking people
Tiffany & Co. is reportedly vacating half of its 12,000 sq ft flagship store in Shanghai as luxury sales plummet in China.
The two-floor store (pictured), at the city’s Hong Kong Plaza, opened in 2019, with a bold design featuring almost 7,000 handcrafted glass diamonds.
But LVMH, the luxury conglomerate that owns Tiffany, has been hit by the economic slowdown globally and by government restrictions in China on ostentatious consumption.
In Q2 of this year LVMH posted a 14 per cent drop in sales for Asia (excluding Japan), which includes China. Profits globally for its watch and jewelry operations fell by 19 per cent during the quarter.
Tiffany will give up half the space at its Shanghai store later this month, according to a Bloomberg news report, and the landlord is in talks with potential new tenants.
It said Tiffany had asked property development and investment Lai Fung to reduce its rent.
Tiffany & Co is reported to be losing staff after setting unachievable sales targets.
Employees at the flagship Fifth Avenue store – newly rebranded as The Landmark – have received lower commissions as a result and many have moved elsewhere, according to sources who spoke anonymously to Fashion Network.
The fashion news website says staff at The Landmark, which generates 10 per cent of all Tiffany revenue, were set a $60m sales target for December 2023, compared to $30m the previous year.
Before the LVMH acquisition of Tiffany, for $16bn in 2021, monthly targets were typically increased by 5 per cent or 10 per cent.
Employees at The Landmark reportedly sold $50m last December. A hefty increase on 2022, but not enough to meet the company’s target.
Tiffany has also been falling short of the $25m monthly targets set for Q1 of 2024, according to the Fashion Network report.
It said some employees claimed they’d been told three quarters of the store’s 350 staff had left in a year.
A Tiffany spokesperson said earning for its top 20 client advisors were up by as much as 75 per cent on the previous year.
“This is truly once in a lifetime,” says the jeweller’s chief gemologist of the 35 sparklers acquired from the now-closed mine in the Kimberley.
Vicky Reynolds wants to take you on a date with a diamond.
Reynolds, Tiffany & Co’s chief gemologist, has had the enviable task of chaperoning the final 35 Argyle diamonds sold around the world, meeting with potential buyers and discussing exactly how these incredibly rare and exceptional gemstones will be used.
It is, she says, “the stuff my dreams are made of. This is truly once in a lifetime.”
Reynolds has worked with New York-based Tiffany & Co since 1987 – almost as long as the Argyle diamond mine, owned by Rio Tinto, operated in Western Australia’s East Kimberley region (it opened in 1983). When the mine closed in 2020 due to finite resources, the final annual tender – ordinarily a highly anticipated and prestigious event on the gemstone calendar – was considered the hottest ticket going.
The Argyle mine produced 90 per cent of the world’s pink diamonds, and each year, only 50 to 60 were ever offered in an invitation-only tender process. So when Rio Tinto rang Reynolds after the tender, to offer Tiffany and Co a further 35 diamonds noted for their vivid pink and purple colour, she jumped at the chance.
The new Tiffany Collection comprises 35 gems, including an unusual red stone, from the Argyle Diamond Mine in Australia.
About a year ago, a representative of the Argyle Diamond Mine — a site in Western Australia that was the pre-eminent source of pink diamonds until it closed in 2020 — approached Tiffany & Company’s chief gemologist with an unusual offer: the chance to purchase a collection of diamonds that were among the last stones taken from the mine.
The decision, Tiffany executives said, didn’t require much consideration.
“We had to do it,” Anthony Ledru, the brand’s president and chief executive, said in his bright office in New York’s Flatiron district. “It’s perfect with what we stand for.”
The purchase, which was finalized several months ago, involved 35 diamonds of various shades: pink, almost purple and even one red gem, an especially unusual color for a diamond. The gems, which had already been cut in various styles, “checked off all of those boxes: rarity, scarcity and beauty,” said Victoria Reynolds, Tiffany’s chief gemologist.
But the stones are small, ranging from 0.35 carats to 1.52 carats, considerably more petite than the statement-size gemstones frequently used in engagement rings and solitaire necklaces.
“These are small, there’s no doubt,” Ms. Reynolds said, “but for connoisseurs, collectors who understand how rare these are, it’s incredibly appealing.”
How much did the jeweler pay for what it now calls the Tiffany Collection? Mr. Ledru wouldn’t disclose the sum, but said it was “probably not enough compared to what it’s going to become in the next five, 10 years.” (He did note that it was Tiffany’s largest single purchase of 2022.)
Exactly how the diamonds will be used in jewelry hasn’t been decided, although Mr. Ledru said it was likely that they all would be used in one-of-a-kind designs. In the meantime, the diamonds are being shown to select clients in New York City and, next month, in Doha, the capital of Qatar.
The eventual prices are sure to be high. “You pay a premium for anything that says ‘Argyle pink diamond,’” said Renée Newman, an independent gemologist and author based in Los Angeles.
For the first time in its history, iconic New York jeweler Tiffany & Co. has launched engagement rings for men.
This May, Tiffany unveils the Charles Tiffany Setting, a collection of solitaire men’s rings with sizable round-brilliant and emerald-cut diamonds measuring up to 4.3 carats.
Tiffany, which did more than $4 billion in jewelry sales last year, is on the cusp of a new era. In January, the company was acquired by the luxury-goods behemoth LVMH for $15.8 billion, and now the iconic Blue Box brand belongs to the French. And, after nearly 180 years in business, the jeweler is finally embracing the idea of diamonds for all.
“Why not diamonds for men?” asks Frank Everett, senior vice president, sales director for Sotheby’s luxury division in New York and a man known for his own collection of jeweled and diamond brooches. “Most men love diamonds but haven’t necessarily thought about applying them in their own jewelry.” While there’s always been a segment of men who favored a diamond pinkie ring, Everett says that men’s diamond rings were especially popular in the late ’70s and ’80s, but then they faded out.
He predicts Tiffany’s new engagement rings will help create a greater market for men’s diamond rings. “Once men break the ice and wear a diamond, it becomes comfortable and natural,” explains Everett.
For the first time in its history, iconic New York jeweler Tiffany & Co. has launched engagement rings for men.
This May, Tiffany unveils the Charles Tiffany Setting, a collection of solitaire men’s rings with sizable round-brilliant and emerald-cut diamonds measuring up to 4.3 carats.
Tiffany, which did more than $4 billion in jewelry sales last year, is on the cusp of a new era. In January, the company was acquired by the luxury-goods behemoth LVMH for $15.8 billion, and now the iconic Blue Box brand belongs to the French. And, after nearly 180 years in business, the jeweler is finally embracing the idea of diamonds for all.
“Why not diamonds for men?” asks Frank Everett, senior vice president, sales director for Sotheby’s luxury division in New York and a man known for his own collection of jeweled and diamond brooches. “Most men love diamonds but haven’t necessarily thought about applying them in their own jewelry.” While there’s always been a segment of men who favored a diamond pinkie ring, Everett says that men’s diamond rings were especially popular in the late ’70s and ’80s, but then they faded out.
He predicts Tiffany’s new engagement rings will help create a greater market for men’s diamond rings. “Once men break the ice and wear a diamond, it becomes comfortable and natural,” explains Everett.
The largest deal in luxury is back on after New York’s famed jeweller Tiffany agreed to a slightly reduced offering price from LVMH in Paris.
LVMH will now pay $US131.50 for each Tiffany share, putting the total price tag at $US15.8 billion ($22.5 billion), down from the $16.2 billion that was first offered earlier this year.
Tiffany’s
The owner of Louis Vuitton, Christian Dior, Fendi along with a basket of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs. But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.
Rumours that the two luxury companies had rekindled talks began to surface in recent days.
“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH’s billionaire CEO Bernard Arnault said in a prepared statement on Thursday.
Tiffany & Co’s flagship store in Sydney. The company has hired advisers to review LVMH’s offer but has not yet responded to it
Tiffany sues LVMH for reneging on $22b deal as France steps in Tiffany, with its famed blue boxes, has in recent years attempted to regain the luster of the “Breakfast at Tiffany’s” era as its customer base ages.
It’s shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.
LVMH, led by billionaire Arnault, a consumate dealmaker, believes Tiffany will strengthen its position in high-end jewellery and in the US market.
LVMH is also making a bet on China’s economy, where Tiffany has been expanding.
The buyout has been approved by the boards of both companies, and it’s expected to close early next year.
The largest deal in luxury is back on after New York’s famed jeweller Tiffany agreed to a slightly reduced offering price from LVMH in Paris.
LVMH will now pay $US131.50 for each Tiffany share, putting the total price tag at $US15.8 billion ($22.5 billion), down from the $16.2 billion that was first offered earlier this year.
Tiffany’s
The owner of Louis Vuitton, Christian Dior, Fendi along with a basket of wine and champagne brands, appeared to walk away from the acquisition last month after it said the French government had pushed for a delay because of the threat of proposed US tariffs. But the reasons for its cold feet seemed to shift, and there was pressure from investors on both sides to make a deal happen.
Rumours that the two luxury companies had rekindled talks began to surface in recent days.
“We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany,” LVMH’s billionaire CEO Bernard Arnault said in a prepared statement on Thursday.
Tiffany & Co’s flagship store in Sydney. The company has hired advisers to review LVMH’s offer but has not yet responded to it
Tiffany sues LVMH for reneging on $22b deal as France steps in Tiffany, with its famed blue boxes, has in recent years attempted to regain the luster of the “Breakfast at Tiffany’s” era as its customer base ages.
It’s shifted its focus to younger shoppers and made a significant push online. The deep pockets of LVMH could go a long way in helping that transformation along.
LVMH, led by billionaire Arnault, a consumate dealmaker, believes Tiffany will strengthen its position in high-end jewellery and in the US market.
LVMH is also making a bet on China’s economy, where Tiffany has been expanding.
The buyout has been approved by the boards of both companies, and it’s expected to close early next year.
A US court has approved Tiffany & Co.’s request to fast-track its lawsuit against LVMH, scheduling a four-day trial starting January 5, 2021.
The timeline means a ruling would come after the final deadline for LVMH’s takeover of Tiffany, but before antitrust approvals for the deal begin to expire. The US jeweler had asked for the trial to take place even sooner, before the deal’s November 24 termination date, while the French luxury group had sought to delay the proceedings for several months.
“We appreciate the court’s ruling today to expedite the process,” Tiffany chairman Roger Farah said Monday. “Despite LVMH’s ongoing efforts to avoid paying the agreed-upon price for Tiffany, a trial on January 5, 2021, will hopefully lead to a ruling prior to the expiration of US antitrust clearance on February 3, 2021, and enable us to protect our company and our shareholders.”
LVMH pulled out of the $16 billion transaction earlier this month, citing a letter from the French government urging it to delay closing until after the deadline due to a trade dispute with the US. However, Tiffany claimed LVMH was intentionally stalling the deal so the deadline would pass and it could renegotiate a new takeover at a lower price, adding that the government instructions were not binding.
LVMH later accused Tiffany of mismanagement during the Covid-19 pandemic, and plans to argue to the court that this constituted a “material adverse effect” enabling the buyer to renege on the deal. Tiffany rejected this and accused its sparring partner of breaching the agreement by failing to obtain antitrust approvals promptly.
However, LVMH said it would close the deal if the court found that it could not abandon it, despite the trial occurring after the transaction deadline, Reuters reported, citing court papers.
“LVMH is fully confident that it will be able to defeat Tiffany’s accusations and convince the court that the conditions necessary for the acquisition of Tiffany are no longer met,” the French company said in a statement Monday. “In this regard, in the coming months, LVMH will demonstrate to the American justice system that the mismanagement of Tiffany during the Covid-19 crisis constitutes a material adverse effect.”
A US court has approved Tiffany & Co.’s request to fast-track its lawsuit against LVMH, scheduling a four-day trial starting January 5, 2021.
The timeline means a ruling would come after the final deadline for LVMH’s takeover of Tiffany, but before antitrust approvals for the deal begin to expire. The US jeweler had asked for the trial to take place even sooner, before the deal’s November 24 termination date, while the French luxury group had sought to delay the proceedings for several months.
“We appreciate the court’s ruling today to expedite the process,” Tiffany chairman Roger Farah said Monday. “Despite LVMH’s ongoing efforts to avoid paying the agreed-upon price for Tiffany, a trial on January 5, 2021, will hopefully lead to a ruling prior to the expiration of US antitrust clearance on February 3, 2021, and enable us to protect our company and our shareholders.”
LVMH pulled out of the $16 billion transaction earlier this month, citing a letter from the French government urging it to delay closing until after the deadline due to a trade dispute with the US. However, Tiffany claimed LVMH was intentionally stalling the deal so the deadline would pass and it could renegotiate a new takeover at a lower price, adding that the government instructions were not binding.
LVMH later accused Tiffany of mismanagement during the Covid-19 pandemic, and plans to argue to the court that this constituted a “material adverse effect” enabling the buyer to renege on the deal. Tiffany rejected this and accused its sparring partner of breaching the agreement by failing to obtain antitrust approvals promptly.
However, LVMH said it would close the deal if the court found that it could not abandon it, despite the trial occurring after the transaction deadline, Reuters reported, citing court papers.
“LVMH is fully confident that it will be able to defeat Tiffany’s accusations and convince the court that the conditions necessary for the acquisition of Tiffany are no longer met,” the French company said in a statement Monday. “In this regard, in the coming months, LVMH will demonstrate to the American justice system that the mismanagement of Tiffany during the Covid-19 crisis constitutes a material adverse effect.”
