28-8-2020
LVMH has delayed its US$16.2 billion acquisition deal with Tiffany by three months, until 24 November. A source familiar with the discussion said Tiffany is exercising the option to apply the date as the ultimate deadline.
The ongoing COVID-19 pandemic has posed impact on the sales of luxury conglomerate LVMH in the first half of 2020. It experienced a 27 percent decline in revenue yoy. LVMH stated on its financial report: “In a very turbulent context, the group will maintain a strategy focused on preserving the value of its brands, based on the exceptional quality of its products and the responsiveness of its teams. In the current situation, the group will further strengthen its policy of controlling costs and being selective in its investments.”
Like any other big jewellery brands, Tiffany reports a fall in its global net sales at q2, at 29 percent yoy, despite its digital sales jump 123 percent. LVMH CFO Jean-Jacques Guiony commented on Tiffany’s sale performance were clearly affected by the coronavirus crisis. “That said, we have signed a contract and we will respect it,” he added.
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