FinancialsAug 08, 2025
Brilliant Earth’s Q2 Sales Up 3% as Engagement Ring Sales RiseThe company raised its full-year sales guidance while noting it has not yet assessed the potential impact of the latest tariff news.
MajorsSep 14, 2020
Tiffany-LVMH Deal May Be Saved, Say Analysts
LVMH’s acquisition of Tiffany & Co. still has a chance, albeit at a lower price.
A platinum and diamond wedding ring set from Tiffany & Co. Analysts said LVMH’s acquisition of the jeweler may still happen, if the sale price is lowered. (Photo courtesy of Tiffany & Co.)
New York—LVMH’s acquisition of Tiffany & Co. is on shaky ground after the French luxury titan announced Wednesday it would be backing out of its agreement to buy the American jeweler.
Tiffany responded with a lawsuit to force LVMH to move ahead with the deal.
In its official statement issued last week, LVMH cited closing date issues after Tiffany requested a second extension and, it said, the French government asked it to hold off until January 2021 because of proposed U.S. tariffs on French luxury goods.
Tiffany countered that LVMH was looking for a way out of the $16.2 billion deal and breached the merger agreement by dragging its feet on securing the necessary regulatory clearances.
The deal recently received regulatory approvals from the Japan Fair Trade Commission and the Mexican competition authority, according to an 8-K filing with the U.S. Securities and Exchange Commission. It is still waiting for clearances from the European Commission and the Taiwan Fair Trade Commission.
LVMH said last week it plans to file its own lawsuit in response.
It called Tiffany’s lawsuit “totally unfounded” and claimed the jeweler had prepared it “a long time ago.”
After looking over Tiffany’s first-half results, the French luxury conglomerate called its perspectives for 2020 “very disappointing and significantly inferior to those of comparable brands of the LVMH Group during this period.”
LVMH said it would be challenging in court the way Tiffany’s management handled the COVID-19 crisis, noting that the company distributed “substantial dividends” when it was losing money and that its operation and organization are not “substantially intact.”
A long legal battle is likely ahead, but analysts aren’t ready to say the deal is off just yet.
“We’re not experts in French foreign affairs but we do believe that Tiffany & Co. remains an attractive target,” wrote Needham analyst Rick Patel in a note to investors shared with National Jeweler.
RELATED CONTENT: What Tiffany’s Acquisition Means for the Jewelry Industry
The COVID-19 pandemic took a toll on Tiffany’s second-quarter results, Patel noted, but highlighted the retailer’s progress in China, digital, and its new product launches.
Those strategic areas were what LVMH was likely drawn to in the first place, he said.
However, the pandemic has led to lower retail valuations across the board, noted Patel.
The deal could go through if Tiffany is willing to lower its initial selling price of $135 per share, he said, but it’s unclear whether the jeweler is willing to do so.
Oppenheimer analyst Brian Nagel
Editors' Picks
Sponsored by
echoed that sentiment, adding that this will likely be an ongoing negotiation.
“Our best estimate is that there now exists an 80-85% chance (down from 90%-plus) for a deal to occur at or above an acquisition price of $108/share (vs. a current offer of $135/share),” he wrote.
When talk of the deal first began, Tiffany confirmed it had received a bid for $120 per share, which would have valued the company at $14.5 billion.
Tiffany reportedly requested that LVMH up its bid to $130 per share. The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
A price reduction could salvage the deal, said Guggenheim analyst Robert Drbul.
“Considering the deal was initially negotiated in November 2019 (pre-pandemic), the deal could still be finalized, albeit at a lower price,” he wrote. “We continue to believe LVMH is the optimal buyer for Tiffany & Co., and Tiffany is a logical fit within LVMH’s portfolio of brands.”
LVMH said at the time that the addition of Tiffany could strengthen its position in the jewelry market and bolster its presence in the United States.
The acquisition would also give LVMH access to Tiffany’s vertical integration capabilities.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002. It is a
De Beers sightholder and has also inked long-term rough supply agreements with Alrosa and Dominion Diamond.
The specialty jeweler also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor.
Analyst Patel also took a look back to November 2019, when LVMH first announced its acquisition plans.
In the first half of 2019, Tiffany’s business had slowed and its comps in the Americas were on the decline.
“At the time, Tiffany was known to be a self-help story that was investing in product innovation, marketing, digital and store renovation. In our view, the company remains a self-help story and is making progress on its growth initiatives despite the tough environment,” he wrote.
Looking at Tiffany as a whole, Needham lists an acceleration of same-stores sales in North America, higher-than-expected margins, and a successful introduction of new products as potential upside drivers.
Its risks include a weakening in the North American market, a greater-than-expected commodity inflation and a stronger U.S. dollar, which could hurt tourism.
Needham, Oppenheimer and Guggenheim all have a Hold rating on the jeweler.
“Our best estimate is that there now exists an 80-85% chance (down from 90%-plus) for a deal to occur at or above an acquisition price of $108/share (vs. a current offer of $135/share),” he wrote.
When talk of the deal first began, Tiffany confirmed it had received a bid for $120 per share, which would have valued the company at $14.5 billion.
Tiffany reportedly requested that LVMH up its bid to $130 per share. The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
A price reduction could salvage the deal, said Guggenheim analyst Robert Drbul.
“Considering the deal was initially negotiated in November 2019 (pre-pandemic), the deal could still be finalized, albeit at a lower price,” he wrote. “We continue to believe LVMH is the optimal buyer for Tiffany & Co., and Tiffany is a logical fit within LVMH’s portfolio of brands.”
LVMH said at the time that the addition of Tiffany could strengthen its position in the jewelry market and bolster its presence in the United States.
The acquisition would also give LVMH access to Tiffany’s vertical integration capabilities.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002. It is a
De Beers sightholder and has also inked long-term rough supply agreements with Alrosa and Dominion Diamond.
The specialty jeweler also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor.
Analyst Patel also took a look back to November 2019, when LVMH first announced its acquisition plans.
In the first half of 2019, Tiffany’s business had slowed and its comps in the Americas were on the decline.
“At the time, Tiffany was known to be a self-help story that was investing in product innovation, marketing, digital and store renovation. In our view, the company remains a self-help story and is making progress on its growth initiatives despite the tough environment,” he wrote.
Looking at Tiffany as a whole, Needham lists an acceleration of same-stores sales in North America, higher-than-expected margins, and a successful introduction of new products as potential upside drivers.
Its risks include a weakening in the North American market, a greater-than-expected commodity inflation and a stronger U.S. dollar, which could hurt tourism.
Needham, Oppenheimer and Guggenheim all have a Hold rating on the jeweler.
More on Majors
The Latest
Events & AwardsAug 08, 2025
GJEPC’s Jewellers for Hope Celebrates 10 Years of FundraisingThe organization has raised more than $1.3 million for charity since its inception.
TrendsAug 08, 2025
Piece of the Week: Rahaminov Diamonds’ Bezel BangleThe brand’s latest iteration of a bezel-set diamond bangle features clean lines and a timeless design for a new modern silhouette.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
WatchesAug 07, 2025
Bulova’s New Collection Honors Tony BennettThe first watch in the series commemorates his participation in the Civil Rights movement, marching from Selma to Montgomery in 1965.
Weekly QuizAug 08, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Lab-GrownAug 07, 2025
Chatham Releases Catalog for Loose Lab-Grown GemstonesThe catalog contains a complete listing of all the loose gemstones in stock, as well as information about the properties of each stone.
TechnologyAug 07, 2025
Rembrandt Charms Debuts New Website, Bird CharmsThe company added a retailer dashboard to its site and three new birds to its charm collection, the cardinal, blue jay, and hummingbird.
Brought to you by
Investing in the Next Generation of Bench JewelersThe Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.
Policies & IssuesAug 06, 2025
Tariff on India to Rise to 50%, Trump Says An additional 25 percent tariff has been added to the previously announced 25 percent.
IndependentsAug 06, 2025
Smith & Son Jewelers to Close 107-Year-Old Location Its Springfield, Massachusetts, store is set to close as owner Andrew Smith heads into retirement.
CollectionsAug 06, 2025
Zahn-Z Swims With Whales in ‘Beluga’ CollectionDesigner Hiba Husayni looked to the whale’s melon shaped-head, blowhole, and fluke for her new chunky gold offerings.
TrendsAug 06, 2025
Paola De Luca to Release Trendbook 2027+She will present the 23rd edition of the trend forecasting book at Vicenzaoro on Sept. 7.
CrimeAug 05, 2025
Report: Suspect Arrested in 1992 Murder of Miami JewelerOmar Roy, 72, was arrested in connection with the murder of jeweler Dionisio Carlos Valladares.
CollectionsAug 05, 2025
Mignon Faget Commemorates 20th Anniversary of Hurricane KatrinaThe New Orleans-based brand’s “Beyond Katrina” jewels honor the communities affected by the storm.
ColumnistsAug 05, 2025
The PR Adviser: Affiliate Marketing Is the Cost of CoverageLilian Raji explains why joining an affiliate network is essential for brands seeking placements in U.S. consumer publications.
Events & AwardsAug 05, 2025
JA Announces Seymour & Evelyn Holtzman Bench Scholarship WinnersThe organization has awarded a total of $42,000 through its scholarship programs this year.
Events & AwardsAug 04, 2025
Gem Awards, David Yurman Introduce $50K Grant for Emerging DesignersThe winner of the inaugural David Yurman Gem Awards Grant will be announced live at the 2026 Gem Awards gala.
TrendsAug 04, 2025
Amanda’s Style File: August’s Bright BaublesAs summer winds down, celebrate the sunny disposition of the month’s birthstones: peridot and spinel.
CrimeAug 04, 2025
‘The Watch King’ Assaulted, Robbed in QueensMoshe Haimoff, a social media personality and 47th Street retailer, was robbed of $559,000 worth of jewelry by men in construction outfits.
MajorsAug 01, 2025
Helzberg President Julie Yoakum Moves Over to Signet JewelersThe addition of Yoakum, who will lead Kay and Peoples, was one of three executive appointments Signet announced Thursday.
MajorsAug 01, 2025
Jewelers Mutual Names Mike Alexander as President The insurance company’s previous president and CEO, Scott Murphy, has split his role and will continue as CEO.
SourcingAug 01, 2025
Gemfields’ Auction Revenue Drops 50% in H1The nearly six-month pause of operations at its Kagem emerald mine earlier this year impacted the miner’s first-half results.
CollectionsAug 01, 2025
Piece of the Week: Hernsdorf’s ‘Tears of Aphrodite’ NecklaceThe necklace uses spinel drops to immortalize the moment Aphrodite’s tears mixed with her lover Adonis’ blood after he was fatally wounded.
SourcingJul 31, 2025
De Beers Records $189M First-Half Loss The diamond miner and marketer warned last week that it expected to be in the red after significantly cutting prices in Q2.
Events & AwardsJul 31, 2025
These Are the 2025 CASE Award WinnersJewelers of America’s 35th annual design contest recognized creativity, artistry, style, and excellence.
IndependentsJul 31, 2025
Matthew Tratner Takes Over as CBG President Tratner succeeds Andie Weinman, who will begin stepping back from the buying group’s day-to-day operations.
Policies & IssuesJul 30, 2025
Tariff on India Will Be 25%, Trump Says The president made the announcement via Truth Social Wednesday, adding that India also will face a penalty for its dealings with Russia.
