LVMH raising its Tiffany offer to 15,8 billion dollars

The French luxury group LVMH (LVMH) is raising its Tiffany (TIF) offer to 15,8 billion dollars, write the Reuters and Financial Times. According to the news, the new takeover offer is close to 130 dollars a share. This would give the market value of Tiffany to 15,8 billion dollars including the 350 million net debt.

This new offer would mean that the LVMH would be able to have more information about the financials of Tiffany. On the other hand, they have not entered an exclusivity agreement.

The French luxury group LVMH is trying to expand to the US markets with the offer of the 1837 founded US company. Tiffany´s shares has been increasing during the talks and yesterday the closing was down 0,14 % to 123,33 dollars in New York.

Business Finance

Microsoft and Tiffany lifted US stocks in the opening

The tech company Microsoft (MSFT) and luxury company Tiffany (TIF) lifted the US stocks in the opening on Monday. Microsoft´s deal with the Pentagon cloud computing service, the value of over 10 billion dollars, raised the company shares. Microsoft was up 2,23 % and was trading at 143,87 dollars in New York.

The shares of the luxury house Tiffany rose over 30 % in the opening, after the French luxury group LVMH (LVMH) has made 120 dollar a share takeover bid of the US company during the weekend.

Tiffany´s shares opened at 127,65 dollars and was trading at 129,95 dollars after some analysts have raised the target price and upgraded their recommendations. Some market analysts think that Tiffany may get also interest from luxury rivals such as the Swiss Richemont (CFR) and the French Kering ( KER).

Richmond was also trading up, 2,93 % at 77,22 francs in Zurich, while the French Kering was trading down 0,66 % at 510 euros in Paris.

S&P 500 -index traded record high, while Nasdaq and Dow Jones are still some behind from their peaks. S&P 500 -index was up 0,5 % to 3039 points, Dow Jones was up 0,51 % to 2709 points and Nasdaq 0,84 % to 8312 points.

In London, where the Brexit-delay is now granted to the end of January 2020 if needed, the FT-SE 100 -index was trading also up 0,15 % to 7335 points. The UK Parliament will debate today about the elections and the possible days for it.

 

 

Business Finance

Tiffany gets LVMH bid of 120 dollars a share

The US luxury house Tiffany & Co (TIF) has received a takeover bid from the French luxury group LVMH (LVMH). The bid is about 120 dollars a share, valuing the Tiffany to close to 14,5 billion dollars. The closing price of Friday was 98,55 dollars, which means the bid is about 22 % more than the market price.

According to Wall Street Journal, the French luxury group could have to rise the bid if they want to buy the enlargement to the US markets.

 

 

 

 

 

 

 

 

 

 

Business Finance

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.

 

 

 

 

 

 

 

 

 

Business Finance Lifestyle

Tiffany to open more stores in China – Bloomberg

The US jewellery company Tiffany (TIF) is opening more stores in mainland China, writes Bloomberg today. According to the CEO Alessandro Bogliogo the company has seen ” a big increase in sales in mainland China”.

According to Tiffany, Chinese consumers have decreased somewhat the spending overseas but continue shopping in mainland. Also the ongoing trade talks between the US and China have had their own impact in the spending.

The company is to published its third quarter figures in late October. Today the company shares were trading down -0,61% at 92,27 dollars in New York.

 

 

 

 

 

 

Business Lifestyle

Tiffany´s sales one billion dollars during the first quarter

The US listed luxury company Tiffany (TIF) said on June 4th, that major part of the company sales growth came from China. The company net sales were about 1000 million dollars during the first quarter, ending April 30th. Compared to last year figures, the decline was 3 procent.

– Our first quarter results reflect significant foreign exchange headwinds and dramatically lower worldwide spending attributed to foreign tourists. That said, we were pleased that, at the core of our business, global sales attributed to local customers, led by sales in China, grew over last year’s very strong sales results. We believe this growth in sales to local customers reflects progress in executing our strategic priorities, including innovations across products, communications and the customer experience, and that Tiffany is positioned for improving trends in the second half of 2019, said the Group´s CEO Alessandro Bogliolo in the company press release.

Tiffany´s worldwide net sales declined 3% to 1.0 billion dollars and comparable sales declined 5%. On a constant-exchange-rate basis, net sales were equal to the earlier year and comparable sales declined 2%.

Net earnings of 125 million dollars were 12% lower than the earlier year’s 142 million dollars. Net earnings per diluted share were 1.03 dollars compared to 1.14 dollars in the year ago.

All the major markets showed declined trend in the sales. In the Americas, total net sales declined 4% to 406 million dollars. In Asia-Pacific, total net sales declined 1% to 324 million dollars.

– These results reflected a continuation of strong growth in mainland China and mixed results in other markets. These sales results also reflected lower spending attributed to foreign tourists, the company says.

In Europe, total net sales declined 4% to 102 million dollars and comparable sales declined 7%. Other net sales of 26 million dollars were 17% above the previous year, as increased wholesale sales of diamonds more than offset a 17% decline in comparable sales in our stores in the UAE.

Company also said that the possible US China tariffs could increase the jewelry tariffs from its current level to a new level of 25 % on average. The company increased its quarterly dividend by 5 procent.

Tiffany´s stock (TIF) ended Friday in New York to 94,48 dollars, up 0,94 %, giving the market cap of the company to 11,47 billion dollars.

Business Lifestyle

Baselworld2019: New innovations for luxury

It is spring time in Baselworld2019. This year will mark the fairs even more towards innovations and creativity. The global number one place for luxury watches and jewellery is also presenting the best of new innovations but with traditional expertise and knowhow.

The Swiss Watch Industry itself recorded last year a 6,3 % increase in exports and the total turnover was 21,2 billion Swiss francs. So luxury industry matters and it is an essential part of the country’s gross domestic product.

ComteamPUB+ will share with you the best innovations and trends from Baselworld.

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