LVMH is having breakfast at Tiffany’s — and maybe lunch and dinner, too. On Monday, luxury conglomerate Louis Vuitton Moet Hennessy confirmed rumors that it acquired the jeweler for $16.2 billion. The announcement was made in an Instagram post, on iconic Tiffany blue letterhead, and read, “We are delighted to have the opportunity to welcome Tiffany to the LVMH family.”
The news follows Tiffany’s reports that sales were down globally and in China, where the brand is trying to break out as a major luxury player in the jewelry space. And because LVMH has a wide range of products at varying price points, including Virgil Abloh at Louis Vuitton, Tiffany will be invigorated with fresh, new Millennial shoppers.
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According to Fortune, Tiffany Chief Financial Officer Mark Erceg told investors in the summer that the company has had to “eat” the latest Chinese tariff hike to avoid putting itself at a price disadvantage against the likes of Richemont’s Cartier and LVMH’s Bulgari.
In the same press release, Alessandro Bogliolo, Chief Executive Officer of Tiffany said the deal with LVMH will provide all the “support, resources and momentum” to help the brand “evolve towards becoming The Next Generation Luxury Jeweler.” Plus, now LVMH is in a better position to compete with Richemont, the Swiss luxury group that owns Cartier. “As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship, and strong cultural values,” Bogliolo continued.
LVMH will reportedly increase Tiffany’s marketing and accelerate its “existing strategy, which includes launching more new products, upgrading boutiques and making the brand more appealing to millennials,” the Wall Street Journal is reporting.