CEO Bogliolo: Tiffany will reach new heights in the LVMH deal

Tiffany´s CEO Alessandro Bogliolo thinks the merge with the French luxury group LVMH will help the company to reach new heights. He commented the merge deal in the company press release yesterday.

-Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values, Mr Bogliolo said.

The takeover deal was well managed. According to Financial Times, the LVMH CEO Bernard Arnault visited the US in the opening ceremony of the Louis Vuitton leather production plant in Texas in October. The US President Donald Trump was also one of the firsts to know of the acquisition, although no names was mentioned to him, Mr Arnault told the FT reporter yesterday of that Texas-event.

And the business circles are small in the luxury business. For example the CEO of Tiffany, Mr Bogliolo is also a known-person to LVMH from his earlier carrier as a senior position at the Italian fashion house Bulgari, now part of the French luxury group.

The Tiffany takeover or LVMH´s Christmas present is the biggest deal for the company. According to Bloomberg Opinion the deal values the Tiffany about 16 times Ebitda, which is nice compared to the earlier deals in the industry. According to Bloomberg data, the LVMH purchase of Bulgari in 2011, the valuation was 23-24 times, as was the Swiss company´s Swatch purchase of Harry Winston in 2013.

So, what is going to happen next? Will the mergers and acquisitions trend in the luxury business continue? Sure. And all luxury companies are heading to Asia. It is also expected that LVMH will increase the Tiffayny´s presence in the Asian markets and find the best locations for the high-end consumers of Tiffany. All studies show that the biggest growth for luxury brands is coming from Asian consumers in the coming years.

As Mr Arnault told the Financial Times, LVMH is increasing the desirability of the Tiffany brand.

– My goal with Tiffany -as it is for Louis Vuitton or Dior – is that desirability for the brand should be higher in 10 years time than it is right now, he said in the FT interview.

The announced deal will increase the other major luxury brands interest to join the growth race. The French rival Kering, with brands like Gucci, Saint Laurent and Bottega Veneta and the Swiss Richemont, with brands like Cartier, IWC and Piaget, are in the line.

The stock markets have also seen the increase of interest and for example nearly all the major luxury companies were trading up on Tuesday in the Tiffany aftermatch.

LVMH was trading up 0,77 % at 407 euros, Tiffany slightly up 0,01 % to 133 dollars, Kering (KER) up 0,40 % at 546 euros and the UK Burberry (BRBY) up 0,24 % to 2093 pounds. Only the Swiss Richemont (CFR) was trading down, 0,57 % at 76 Swiss francs.

Picture: Luxury watches from LVMH Group: Hublot Big Bang, Tag Heuer, Bulgari

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LVMH and Tiffany may announce the deal on Monday – Bloomberg

 

HD_PatekPhilippe_ChronographeFlybackQuantiemeAnnuelReference59601_Big&smallThe global luxury group, the French LVMH and the US jeweler Tiffany (TIF) are having their board meetings today on Sunday and it might be possible that the merger deal might be announced already on Monday, Bloomberg News says.

According to the information, LVMH has raised the price to 135 dollars a share, which would mean that the valuation of the New York jeweler would be more than 16 billion dollars. Tiffany´s shares closed to 125,51 dollars on Friday in Wall Street giving the market cap of 15,16 billion dollars. In October the LVMH-offering price was 120 dollars per share in cash.

The French LVMH (MC) is trying to enter the US jewellery markets with the acquisition of  Tiffany, which has over 300 different retail stores globally. It operates also in the field of luxury watches and home & accessories.

LVMH is the owner of the several well-known brands like Louis Vuitton, Dior, Bulgari, Hublot, Tag Heuer, DKNY, Belmond and Marc Jacobs. LVMH´s shares closed up 1,80 % to 396,20 euros in Paris on Friday.

Picture: Patek Philippe luxury watch “ChronographeFlybackQuantiemeAnnuelReference59601” Baselworld 2019. Tiffany is also reseller of Patek Philippe, Geneva watches.

 

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LVMH is considering Tiffany takeover – Bloomberg

The world largest luxury company, the French LVMH (LVMH) is considering a takeover of the US luxury company Tiffany & Co (TIF). The takeover, according to Bloomberg, would increase the French company´s presence in the US markets, but according to the news, there is no guarantee of the possible deal.

Tiffany, which was founded in 1837 in Manhattan, is one of the leading luxury houses in the US with the annual turnover of 4,4 billion dollars and net earnings 586 million dollars in 2018. The company has over 300 brand stores globally for its jewellery, timepieces, accessories and fragrances.  Nearly half of its sales comes from the US markets, while Asia counts about 30 %, Japan 15 % and Europe 11%.

The market cap of Tiffany is about 11,9 billion dollars, while the French rival LVMH is about 190 billion euros.

The French company LVMH has been investing in the US markets and last week the company opened its Louis Vuitton factory in Texas. LVMH´s other brands in the luxury jewellery category are for example Bulgari, Dior, Hublot and Tag Heuer.

Both companies enhance the luxury and sustainability integration and for example Tiffany has launched a Diamond Source Initiative, where customers can know the geographical region of their individually registered diamonds.

 

 

 

 

 

 

 

 

 

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LVMH: Carbon Fund achieved its targets 2018

The LVMH (LVMH, Paris) Carbon Fund has achieved its objective for 2018, raising 11.3 million euros in financing for 112 projects designed to control and reduce the Group’s greenhouse gas emissions, the company said in the statement.

This result is that LVMH doubled the price per metric ton of CO2 generated from 15 to 30 euros in 2018.  By mechanically increasing the carbon contributions of each Maison, LVMH signals its intent to accelerate initiatives to reduce CO2 emissions.

-The success of our Carbon Fund once again underlines the major and decisive commitment of LVMH management and all our teams to help protect the environment and fight climate change.  The LIFE environmental program is a top priority for all our employees. We thank them for their engagement and we continue to count on them to help us achieve all our environmental targets for 2020,” said Antonio Belloni, LVMH Group Managing Director.

The 112 projects deployed in 2018 have eliminated nearly 2,500 CO2 equivalent metric tons of emissions annually. This is equivalent to the annual emissions of 1,600 European households.

Created in 2016, the LVMH Carbon Fund is a pillar in the Group’s environmental policy, which has announced a 25% reduction in CO2emissions by 2020 as one of its main objectives.  This aligns the Group with the 2°C climate target  agreed in the COP21 climate conference in Paris.

The annual contribution of each LVMH Maison is calculated by multiplying the greenhouse gas emissions from its activities by the carbon price set by the Group. The amount must then be invested the following year in eligible projects designed to reduce these emissions.

The investments were in all the Group´s locations: 29% in France, 34% in Europe (excluding France), 15% in Asia, 6% in Japan and 16% in the United States.

The projects included for example:

  • 80% of the projects concern energy efficiency: LED relamping, building insulation, upgrading to install more efficient air-conditioning and heating systems, energy consumption monitoring systems;
  • 13% of the projects enable production of renewable energy;
  • 6% of the projects concern other areas (purchasing of electric tractors, for example);

28 Maisons are actively engaged in this program: Acqua di Parma, Belvedere, Benefit, Berluti, Bulgari, Celine, Chandon India, Christian Dior Couture, DFS, Fendi, Fred, Fresh, Givenchy, Glenmorangie, Guerlain, Hennessy, Hublot, Le Bon Marché, Loewe, Loro Piana, Louis Vuitton, LVMH Fragrance Brand, MHCS, Parfums Christian Dior, Royal Van Lent, Sephora, TAG Heuer and Zenith.

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Bulgari luxury watch to celebrate 100 anniversary

 

Diva Finissima Minute Repeater from luxury watchmaker Bulgari is for the ones and only. This fine artistic jewellery watch is having limited edition of ten pieces globally, with the price of 187.000 dollars. It has been designed to celebrate the company´s 100 years anniversary.

The watch is a combination of Italian jewellery design and Swiss high-quality watchmaking. This is also the world´s thinnest minute repeater movement for ladies.  The Japanese style of design (Urushi lacquer) in the dial shows fine gold dust as the reminder of beautifull craftmanship.

This watch is having 42-hour power reserve and water-resistant to 30 meters. The strap is black alligator leather by an 18kt rose gold folding clasp with diamonds.

 

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Bulgari ´s new gold and steel design

HD_Bulgari_LuceaTubogas_01Bulgari has redesigned new luxury watches for ladies. The tubogas bracelet, with its flexible links that coil around the wrist, is one of the brand’s signature looks, first used by Bulgari in the 1940s.

– Tubogas is so-called because of its similarity to a woven-metal gas pipe, an elegant expression of industrial-inspired design. It is formed by wrapping long bands of gold or steel around a steel core, interlocking to hide the core metal. It is combined for the first time this year with the case of the Lucea, Bulgari’s most modern ladies’ watch. The name Lucea comes from luce, Italian for “light,” and celebrates the essence of the sundial, with its light-reflecting mother-of-pearl and diamond dials, the company says in the press release.

Lucea Tubogas watches come in a two-tone combination of gold and steel. This watch has hours & minutes  and it is water-resistant to 50 meters. The dial is white mother-of-pearl and all dials are with 12 brilliant-cut-diamond hour markets.

 

 

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