TIF - Tiffany & Co.

NYSE - NYSE Delayed Price. Currency in USD
134.27
-0.09 (-0.07%)
At close: 4:03PM EST
Stock chart is not supported by your current browser
Previous Close134.36
Open134.30
Bid134.00 x 800
Ask134.28 x 1100
Day's Range134.21 - 134.42
52 Week Range78.60 - 134.42
Volume917,048
Avg. Volume2,359,670
Market Cap16.264B
Beta (5Y Monthly)1.61
PE Ratio (TTM)29.96
EPS (TTM)4.48
Earnings DateMar 19, 2020
Forward Dividend & Yield2.32 (1.73%)
Ex-Dividend DateDec 18, 2019
1y Target Est132.21
  • Top 5 4th-Quarter Buys of George Soros' Firm
    GuruFocus.com

    Top 5 4th-Quarter Buys of George Soros' Firm

    Soros Fund Management’s top buys include game publisher and luxury jeweler Continue reading...

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    5 Jewelers to Love on Valentine's Day

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  • Jeremy Grantham's Top 5 Buys of the 4th Quarter
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    Jeremy Grantham's Top 5 Buys of the 4th Quarter

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  • Barrons.com

    The No. 1 Company in Key Sectors of Barron’s 100 Most Sustainable Companies

    Among the sector leaders of Barron’s third annual ranking of America’s Most Sustainable Companies are W.W. Grainger and Tiffany.

  • First Eagle Investment Cuts 3M, Microsoft
    GuruFocus.com

    First Eagle Investment Cuts 3M, Microsoft

    Firm's largest sales of the 4th quarter Continue reading...

  • Moody's

    Wells Fargo Commercial Mortgage Trust 2016-LC24 -- Moody's affirms six classes of WFCM 2016-LC24

    The ratings on the P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. The rating on the IO class was affirmed based on the credit quality of the referenced classes.

  • There’s a Lesson for Luxury in the Coronavirus Crisis
    Bloomberg

    There’s a Lesson for Luxury in the Coronavirus Crisis

    (Bloomberg Opinion) -- With the death toll from the coronavirus rising, the fate of high-end handbag sales still seems of minor consequence. But the $300 billion luxury industry’s over-dependence on Chinese spending was underlined again on Friday when British fashion house Burberry  Group Plc said it could no longer stand by its previous financial forecast because of the spread of the illness.Just two weeks ago, the company shrugged off disruption in Hong Kong to lift its outlook for sales growth excluding currency movements to a percentage in the low single digits, while anticipating that the operating margin would be broadly stable in the year to March 2020. Analysts at Morgan Stanley said Friday’s warning could imply a 5% cut to 2020 earnings.Burberry is particularly exposed to the epidemic. It generates about 40% of its sales from Chinese consumers at home and abroad. That’s above the 35% for the industry as a whole, according to Bain & Co. and Altagamma. So shutting some shops on the mainland and reducing hours at others has an out-sized effect.It’s too early to know what the end result will be for Burberry and the industry as a whole, but one key lesson is coming into sharp relief: While Chinese shoppers are a powerful force for the industry, no brand should neglect their customers closer to home, or stop trying to drum up demand in other corners of the world. When the Chinese market slumped in 2015 and 2016 because of a government crackdown on extravagance and gyrating stock markets, luxury houses all pivoted toward shoppers in Europe and the U.S. They have lost sight of the need to foster these markets since.For Burberry, it’s a particularly sensitive time to face such uncertainty in its biggest market. The group is in the midst of trying to revive its brand, best known for its black, white, tan and red check. While new iterations, such as the TB Monogram, are gaining traction, Burberry is having to prioritize. It’s now unclear whether a fashion show in Shanghai in April, will go ahead. The first Chinese showcase under new designer Riccardo Tisci will have specially created merchandise, clearly a way to build Burberry’s profile amid its rejuvenation efforts.Given these characteristics — high Chinese exposure plus a turnaround strategy — Prada SpA also looks to be at risk, and the Italian maker of the iconic nylon bag has already closed some stores in mainland China and Macau. The list of other luxury companies that are very dependent on China and Hong Kong is long. Swatch Group AG and Richemont are the most exposed, according to analysts at Bernstein. And Gucci, which accounts for 60% of French parent Kering SA’s sales and 80% of its operating profit, has been a hit with Chinese shoppers over the past three years. Anyone who has witnessed the proliferation of Gucci T-shirts, not all the real thing, in cities from Shanghai to Beijing would attest to its popularity.By contrast, Bernard Arnault’s LVMH looks to be better prepared to handle such a shock. With brands including Moet & Chandon champagne, pop star Rihanna’s beauty line and soon Tiffany & Co. jewelry, it has broad diversification by both geography and product range. Last year, for example, 24% of its sales from the U.S.But given the whole industry’s reliance on Chinese big spenders, no luxury or consumer brand with exposure to the them, wherever they shop, will be immune. Burberry said spending in Europe and other tourist destinations was less affected by the outbreak, but it expected conditions here to worsen too. This week, Coach owner Tapestry Inc., Michael Kors and Versace parent Capri Holdings Ltd. and Estee Lauder Cos. all lowered earnings guidance, citing the virus. Even luxury parka maker Canada Goose Holdings Inc., which has a strong following in the U.S. and Europe, has felt the impact of the outbreak. On Friday it lowered its full-year sales and profit guidance.Global luxury sales could expand by just 1% this year, according to analysts at Jefferies, after what they now expect to be a brutal 20% decline in Chinese demand in the first half. Before the outbreak, they were expecting the industry’s sales to grow by 5% in 2020.  While luxury shares have fallen over the past three weeks, valuations remain close to 10-year highs. As I have noted, the stocks have proved remarkably resilient in the face of everything from trade skirmishes to protests in Hong Kong.Burberry’s warning is a stark reminder that that could be about to change.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    Sparkle fades as coronavirus risks wiping out luxury goods growth

    The luxury goods industry normally relishes the spotlight, but in the case of China's coronavirus it is rueing being one of the most globally exposed sectors to an epidemic that risks all-but wiping out its sales growth this year. Brands from Burberry to Estee Lauder are shutting stores and cutting profit forecasts as business in the industry's biggest market has virtually ground to a halt.

  • France's Richest Man Gets a Free Lunch From the ECB
    Bloomberg

    France's Richest Man Gets a Free Lunch From the ECB

    (Bloomberg Opinion) -- Bernard Arnault, the boss of LVMH Moet Hennessy Louis Vuitton SE, exceeded even his own incredibly low yield expectations in his company’s giant bond sale this week — which included the biggest corporate issue in euros since 2016. The luxury giant raised 7.5 billion euros ($8.3 billion) and 1.55 billion pounds ($2 billion), over a range of maturities from two to 11 years, to help finance its $16 billion purchase of Tiffany & Co.Two of the five euro tranches were placed at negative yields, meaning investors are paying single A-rated LVMH to borrow money. Arnault’s expectations back in November for yields from the sale of “between 0% and 1%” have been surpassed. Even the 11-year tranche has a coupon of just 0.45%. M&A has never been cheaper.France’s richest man can thank the European Central Bank for this state of affairs. The restart of its 189 billion-euro Corporate Sector Purchasing Program has driven credit spreads ever lower. While the central bank wants to lessen the funding costs of European companies — and local subsidiaries of global firms — to make it easier for them to invest, it may not have been meaning to help a French luxury behemoth snap up an American jewelry icon. It’s almost certain that a bond of this size will have been bought by the ECB (or will be picked at some point in the near future). Often the bank takes up to 20% of eligible issues, and there has a been a real paucity of high-quality credit since the Quantitative Easing program kicked back into life.There was another jumbo corporate sale in Europe this week by U.S. Media giant Comcast Corp., which issued notes worth 3 billion euros and 1.4 billion pounds. This type of sale is known as a “reverse Yankee,” where an American company issues debt, but not in dollars. Maybe we could refer to LVMH’s use of dirt cheap funding in its home currency to buy an American company as a “reverse, reverse Yankee.” The world of finance is ever flexible.International Business Machines Corp. also pulled off a bumper bond deal in Europe earlier in the week; the euro credit market is truly open for business. Although January was a record month for issuance, it was dominated by financials and sovereign, supranational and agency (SSA) issuers. Credit spreads have now also moved close to their tightest ever levels, amid the general flight-to-quality sparked by the Coronavirus outbreak. It’s just a shame that most of these jumbo deals are being used to refinance existing operations more cheaply — rather than spurring an investment boom, or local European mergers and acquisitions that would help the continent’s moribund corporate environment. Still, the ECB is doing what it can; if the financing heads over the Atlantic sometimes, that’s the price you pay for the ocean of quantitative easing that’s been made available. No wonder corporates everywhere are filling their boots.To contact the author of this story: Marcus Ashworth at mashworth4@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • LVMH set to raise $10 billion-plus from bond markets for Tiffany deal
    Reuters

    LVMH set to raise $10 billion-plus from bond markets for Tiffany deal

    Louis Vuitton owner LVMH is poised to raise a larger than expected 9.3 billion euros ($10.2 billion) from bond markets on Wednesday to help to finance its purchase of U.S. jeweller Tiffany & Co.. The company is also set to achieve an extremely attractive funding rate with a portion of the debt likely to carry a negative yield, by Reuters calculations, potentially providing encouragement for other companies planning acquisitions. LVMH and Tiffany announced in November that the French luxury goods giant had agreed to acquire the U.S.-listed jeweller for $135 a share in a transaction that valued Tiffany at about $16.2 billion.

  • Tiffany Shareholders Show Their Love, Approve LVMH Deal
    WWD

    Tiffany Shareholders Show Their Love, Approve LVMH Deal

    Luxury titan Bernard Arnault cares about Tiffany & Co. — to the tune of $16.2 billion — but he’s not the only one.When the luxury jeweler’s shareholders gathered at its New York headquarters Tuesday morning to vote on the mega sale to Arnault’s LVMH Moët Hennessy Louis Vuitton, it was in all the important ways, already a done deal. (Arnault wasn’t on the scene, but later issued a statement praising the go-ahead of the transaction, the largest deal ever in the luxury space). The meeting was a formality and little resistance was expected to the deal, struck in November at $135 a share. Investors holding about 72 percent of Tiffany’s stock were represented at the meeting, although the majority of those shares appeared to be voted by proxy. In the room — sipping free coffee, nibbling on croissants, chatting with chief executive officer Alessandro Bogliolo and reading over the rules of the meeting (printed on Tiffany blue paper) — was an eclectic group of smaller shareholders and employees. They were split on the deal. And while those against it were hopelessly outnumbered, they pressed their cases, sometimes in emotional terms, addressing Bogliolo, who chaired the meeting, and Leigh Harlan, senior vice president secretary and general counsel. “I’m really upset about this,” said one woman, who said she had been a shareholder since the Eighties. “Tiffany is one of the last iconic American companies. With all due respect, I think it’s important who owns a company.  “The founders of this company were so American, I’m just shocked by this, so obviously I’m voting against it,” she said, referring to Charles Lewis Tiffany, who started the company in 1837. “I just wanted it known in the history books that someone…I think many are not happy with this. “When I got my ring in 1982, I first went to another store and they said, ‘You better go down the street to Tiffany’s,’ and when I got there, it was such and it still is — I don’t know if it will remain that way — the most democratic store that I’ve ever been to that sells beautiful things. Democratic with a small 'd,'” she said.That notion — that Tiffany is a democratic brand — came up a couple of times and Bogliolo stressed that LVMH has many businesses in its portfolio — yes, Louis Vuitton, but also Sephora, which has accessible prices — and is a brand he once worked at, as chief operating officer of North America.  On the flip side, another shareholder said she flew from Georgia to be at the meeting, leaving behind the room in her home that she has dedicated to “Breakfast at Tiffany’s.” She praised the negotiations, which started with an unsolicited offer of $120, a price that Tiffany chairman Roger Farah ultimately negotiated up by $15. “I’ve owned Tiffany since 2008,” the shareholder said. “During the financial crisis I was willing to step in and buy the shares as everyone was dumping them. It literally changed my life. I’m a small investor and Tiffany allowed me to buy jewelry I never thought I would have.“I notice the watch you have on, I believe that’s the limited edition,” she said to Bogliolo, who answered in the affirmative. “It allowed me to buy that watch, thank you very much.”A shareholders' meeting like this is the corporate equivalent of local politics, where every issue is on the table and every one is personal. Several pensioners asked about who would be managing their retirement savings and how they could get in touch with them, when or if the next dividend would come and so on. The collection of big books with several hundred pages of details on the deal did not need to be consulted. Some of the questions, though, did highlight the fact that much remains unresolved. The deal is still subject to routine regulatory approvals and the details of the merger are yet to be worked out. Tiffany will become a wholly owned subsidiary of LVMH, but even the executive leadership doesn't know exactly what's coming.One employee wanted to know what LVMH’s plans were before voting, but no answer presented itself. A separate shareholder asked somewhat another way: “What becomes of the current officers of Tiffany?” and garnered some slightly nervous laughter from the assembled executives.  “That is one we will leave to LVMH,” Harlan said. “None of the officers have engaged with any discussions with LVMH about their future employment or the terms thereof. So that is something we can anticipate will be coming up in the near term.”Aside from the people, there was a lot of interest in what would become of the famed Fifth Avenue flagship, which is closed for renovation and relocated to a former Nike store nearby. The questioning was at times meandering, although it sometimes revealed interesting nuggets. Tiffany, for instance, subleases the space of its temporary store from Nike, but the building is owned by the Trump Organization. One shareholder noted that once the deal is closed, LVMH, which has stores for other brands nearby, could do what it wants with the Tiffany building. But the sense in the room seemed to be that, while LVMH does own a lot of brands and real estate, Tiffany will have its old home to go back to. Bogliolo said the renovation planning began two years ago and that demolition had started on the upper floors. “The plan is to bring more value to the building and to expand the space for the customer.”The facade and first floor will be cleaned and updated in a respectful way, while the floors higher up will get more modern treatments. And while one shareholder said the rumor was couples would be able to get married at the location, the ceo said he wasn’t sure about weddings, but that there would be room for plenty of proposals and VIP events. Arnault has not yet said just what his plans are for Tiffany’s. But they’re coming shortly — the deal is expected to close midyear.“This approval is a significant milestone as we move closer to completing our acquisition of Tiffany, an iconic company with a rich heritage and unique positioning in the global luxury jewelry market,” Arnault said. “A globally recognized symbol of love, Tiffany will be an outstanding addition to our unique portfolio of luxury brands. We look forward to welcoming Tiffany into the LVMH family and helping the brand reach new heights as an LVMH Maison.”More from WWD * Tiffany Adds Pop-up Flower Shop * Versace Pledges Donation to Chinese Red Cross Foundation * Seems Legit: Sneaker Authentication Game Upping Automation

  • Business Wire

    Tiffany Stockholders Approve Merger With LVMH

    Tiffany & Co. (NYSE: TIF) (the "Company") announced that at a special meeting of its stockholders held earlier today, the Company’s stockholders voted to approve the adoption of the previously announced Agreement and Plan of Merger, dated as of November 24, 2019 (as it may be amended from time to time, the "Merger Agreement"), by and among the Company, LVMH Moët Hennessy-Louis Vuitton SE ("LVMH"), Breakfast Holdings Acquisition Corp. and Breakfast Acquisition Corp. ("Merger Sub"), providing for the merger of Merger Sub with and into the Company (the "merger"), with the Company surviving the merger. Approximately 71.9 percent of the Company’s shares issued and outstanding as of the close of business on January 2, 2020, the record date for the special meeting, were present in person or by proxy at the meeting. Holders of approximately 71.3 percent of the Company’s shares issued and outstanding as of the close of business on the record date voted in favor of the proposal to adopt the Merger Agreement, representing approximately 99.3 percent of votes cast (excluding abstentions).

  • Reuters

    Italy sees fashion sales hit due to China virus, Pandora warns of business freeze

    Italy's fashion industry expects revenues to fall 1.8% in the first half of 2020 due as the coronavirus outbreak hits sales, an industry official said on Tuesday, as jewellery maker Pandora warned business in China had ground to a halt. Several high-end brands also said they had shut down stores in China, the world's biggest luxury goods market, stoking concerns that the industry could face significant damage to sales if the virus is not contained quickly. Carlo Capasa, head of Italy's national fashion chamber CNMI, said the coronavirus outbreak would cause turnover for the Italian industry to fall by 1.8% in the first six months of the year, mostly in the first quarter.

  • Billionaire Bags a Bling Bargain
    Bloomberg

    Billionaire Bags a Bling Bargain

    (Bloomberg Opinion) -- Maverick retailer Mike Ashley likes a flutter at the casino. With his punt on a stake in upmarket handbag maker Mulberry Group Plc, the British billionaire can’t lose.Ashley’s Frasers Group Plc, formerly Sports Direct, said late Monday that it had acquired a 12.5% interest in Mulberry, maker of the iconic Bayswater bag. Ashley, who owns 63% of Frasers, has long dabbled with investments in rivals. Some, such as a holding in JD Sports Fashion Plc, paid off handsomely. But a 30% stake in Debenhams Plc was wiped out when the U.K. department store chain was taken over by its lenders last year.The interest in Mulberry has all the hallmarks of a winner. First, Ashley has likely picked it up on the cheap. Frasers did not disclose the cost. But at Monday’s close, the stake would be worth about 19 million pounds ($24.7 million).Shares in Mulberry have never really recovered from a botched strategy around five years ago, when Bruno Guillon, a former Hermes manager who was chief executive officer at the time, tried to take the leather goods and apparel company upmarket, alienating many of its core customers. New CEO Thierry Andretta and designer Johnny Coca, who joined from Celine, have since returned the brand to its accessible luxury heartland. But the shares remain about 85% off of their 2012 peak.Second, there’s clear strategic logic for Ashley to work more closely with Mulberry. The idea of transforming House of Fraser into the “Harrods of the high street” has been widely mocked because of the department store’s poor performance following its purchase in August 2018. But Ashley clearly wants to take the chain more upmarket. It’s likely to end up as a smaller, more high quality estate.Mulberry is currently in 19 House of Fraser stores, where it trades well. It is also available at Flannels, Ashley’s boutique that sells the likes of Canada Goose and Balenciaga, which is still flying.But there is another reason why Ashley’s interest in Mulberry might pay off. The quintessentially British brand has long been seen as a takeover target. Consolidation in luxury is intensifying, with LVMH’s $16.5 billion purchase of Tiffany & Co and speculation swirling around Moncler SpA and Prada SpA.  While it can’t be ruled out that Ashley will lift his interest further, a big luxury group could also make a move for Mulberry.It is tightly held, so any predator would have to convince the Ong family, which owns 56%, to sell. That may not be easy given that the value of its stake has fallen over recent years. But it may be worth trying given that quality assets are rare, especially those without a big stake held by the families that founded the companies. Longer term, there’s also the possibility that Burberry Group Plc, if its turnaround works, could be interested as part of any future efforts to turn itself into a British luxury conglomerate.In the event of any approach, Ashley not only stands to gain financially, but secures a seat at the table when it comes to this strategically important brand.Conversely, there’s nothing to stop Ashley filling his luxury shopping bag elsewhere. For example Burberry, still in the midst of its turnaround right now, commands a large selling area in Flannels’ new flagship store on Oxford Street for its street wear and rejunvenated accessories.Mulberry might not be this billionaire’s last bling bet. To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Moody's

    Wells Fargo Commercial Mortgage Trust 2016-BNK1 -- Moody's affirms six classes of WFCM 2016-BNK1

    The ratings on the P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 6.3% of the current pooled balance, compared to 4.5% at Moody's last review. Moody's base expected loss plus realized losses is now 6.2% of the original pooled balance, compared to 4.4% at the last review.

  • The King of Luxury Is Armed for Uncertain Times
    Bloomberg

    The King of Luxury Is Armed for Uncertain Times

    (Bloomberg Opinion) -- When even LVMH misses estimates, it’s not a good look for the luxury sector.While the owner of the Louis Vuitton and Christian Dior brands still delivered 8% growth in organic sales in the final quarter of the year, this was slightly below the consensus of analysts’ estimates of 8.7%. Organic sales from the fashion and leather goods division — its driver, accounting for 41% of sales and 64% of operating profit in 2019 — rose by 15%. That’s impressive, but still slower than the second and third quarters.The world’s biggest luxury group hasn’t been immune from the unrest in Hong Kong and a slowdown in Japan after the country increased its consumption tax in October. The backdrop could get worse, given the spread of the deadly coronavirus, which has claimed more than 130 lives.LVMH’s chairman and founder, Bernard Arnault, said on Tuesday that if the outbreak was contained quickly — say in two to two-and-a-half months — the effect would be manageable. If it lasted longer, it would be more serious, he added. Given that Chinese consumers accounted for about 35% of luxury purchases last year, according to Bain & Co. and Altagamma, all top end groups are exposed to the spread of the deadly virus. It’s clearly too early to say how things will progress, and with China grappling with how best to stop the spread of a novel virus that’s infected thousands of people, now isn’t the time to worry about handbag sales. But the uncertain outlook speaks to just how dependent many of the world’s global consumer brands are on China’s market and Chinese consumers wherever they are.For example, on Tuesday Starbucks Corp. said that it would have upgraded its financial projections for the year had it not been for the outbreak in mainland China, its most important growth market. While its high-end Roastery in Shanghai may look like a luxury temple, with queues to rival those at Louis Vuitton, it is just one of its 4,000 outlets across the country. The group has closed more than 2,000 cafes in response to the spread of the illness.As for LVMH, while it will be hit just like the other big brands, it may be better placed to weather any impact than most of its rivals. Its exposure to Chinese consumers is around the industry average — about 30% — according to analysts at UBS. Thanks to both its  geographic and product diversification, with sizable operations in the U.S., for example, it is less dependent on Chinese shoppers than many of its rivals.With sales about three times that of its nearest competitor, it also has scope to change its focus, for example by investing in marketing campaigns to attract domestic customers in the Europe and the U.S., where it’s just bought diamond jewelry specialist Tiffany & Co. It also has scope to cut costs in Asia, if the situation deteriorates further. Consequently, LVMH would face a potential 3% fall in this year’s earnings from a 20% drop in Chinese consumption in the second quarter, according to UBS, which expects some other luxury groups would be hit harder. LVMH hasn’t been immune from the sell-off in luxury shares over the past 10 days. It’s down about 6% since Jan. 17. Even with the recent dip, the shares are up about 60% over the past year, and remain at a deserved premium to the Bloomberg Intelligence top luxury peer group.It’s still early days in terms of establishing the toll the deadly virus might take on luxury and consumer groups. But LVMH’s scale and financial strength should make it one of the more resilient.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Luxury’s Dependence on China Gets Tested
    Bloomberg

    Luxury’s Dependence on China Gets Tested

    (Bloomberg Opinion) -- For a while there, the major luxury companies appeared to be impervious to hard times in Asia. Even as prolonged unrest in Hong Kong hurt sales, and trade talks between the U.S. and China ground on, their stocks kept climbing. That changed this week as fears grow about the spread of a deadly virus in China.With the death toll reaching 25 on Friday, and China restricting travel for 40 million people on the eve of Lunar New Year, the question of what it all means for demand for high-end watches and handbags is obviously of minor concern. Yet it’s an unwanted reminder of just how dependent the industry is on Chinese consumers. Shoppers from the world’s most populous nation, be they in Shanghai, Singapore or San Francisco, probably accounted for about 35% of global luxury goods sales last year, according to Bain & Co. and Altagamma. What’s more, they generated the lion’s share — 90% — of all growth. There’s no reason to think they won’t be just as crucial to the sector’s performance this year too. One analyst, Flavio Cereda at Jefferies, says he expects the bulk of his estimated 5% sales growth (excluding currency movements) in 2020 global luxury sales to come from the Chinese, putting their expected impact at 4 percentage points.  Some companies in particular, including Burberry Group Plc and watchmakers Swatch Group AG and Cartier-owner Richemont, have an exposure above the industry average. It’s too early to say what will be the impact of this new coronavirus that’s gripping China as hundreds of millions of people travel for the Lunar New Year — traditionally a time when revelers spend on goods from the top luxury brands. On Friday, the World Health Organization stopped short of calling it a global health emergency. After first appearing in the central Chinese city of Wuhan, it has spread to locations including Singapore, Hong Kong, Thailand and the U.S. Chinese authorities have been working to revise or cancel planned holiday activities in an attempt to stop any further spreading. Starting on Saturday, Disneyland Shanghai is being closed temporarily.If the crisis intensifies, it could become more problematic. People wanting to avoid the risk of catching the virus will likely curtail anything but the most necessary travel, and avoid crowded areas, with shopping malls among them. That will hurt companies that managed to make up some lost Hong Kong sales at their stores in mainland China.It will also hit sales to Chinese tourists the world over. Although Hong Kong and Macau, which has canceled all of its Lunar New Year festivities, remain the most popular destination for Chinese travelers, Japan, the U.S., Italy and France are also high on their itineraries. Chinese tourists are the highest spenders across most of Europe, according to payments provider Planet, typically splashing out for goods worth about four times that of domestic shoppers. In the U.S., a number of retailers, including diamond jewelry specialist Tiffany & Co., have already said they’ve been impacted by having fewer tourists due to the dollar’s strength.Even though Chinese shoppers have recently been spending more at home, as excursions to Hong Kong fall, they still make the bulk of their purchases when they travel, a time when people are more inclined to blow the budget on impulse buys. Any slowdown in international travel would also hit demand in duty-free shops, including luxury behemoth LVMH’s DFS business and Dufry AG, in which Richemont has a 5% stake.There’s also a broader risk to spending at home and abroad. Luxury thrives when consumers feel happy and wealthy, not when people fears for their health, and that of friends and family. And if the virus has any knock-on effects on the Chinese economy, that would cause ripple effects elsewhere as well. The situation is bringing back memories from 17 years ago when the severe acute respiratory syndrome, or SARS, killed about 800 people. At the time, Chinese shoppers probably accounted for about 10-15% of global luxury sales, much less than today.   So investors will be watching what the impact will be on the big groups. This week, LVMH, Kering SA, Burberry, Richemont and Swatch all fell, as well as U.S. names Tapestry Inc. and Michael Kors-owner Capri Holdings Ltd., all underperforming their respective markets. Some recovered on Friday. Yet valuations remain elevated. That means there’s little comfort as everyone tries to learn more about just what this virus will bring. To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • GlobeNewswire

    Rigrodsky & Long, P.A. Files Class Action Suit Against Tiffany & Co.

    WILMINGTON, Del., Jan. 23, 2020 -- Rigrodsky & Long, P.A.: Rigrodsky & Long, P.A. announces that it has filed a class action complaint in the United States District.

  • GlobeNewswire

    SHAREHOLDER INVESTIGATION: Halper Sadeh LLP Investigates Whether The Sale Of These Companies Is Fair To Shareholders – TIF, INST, TCBI, LOGM

    NEW YORK, Jan. 20, 2020 -- Halper Sadeh LLP, a global investor rights law firm, continues to investigate the following companies: Tiffany & Co. (NYSE: TIF)The.

  • A Tennis-Ball-Sized Diamond Is the Ultimate Status Symbol
    Bloomberg

    A Tennis-Ball-Sized Diamond Is the Ultimate Status Symbol

    (Bloomberg Opinion) -- If you have to ask the price, you can’t afford it. No wonder Bernard Arnault, France’s richest man, isn’t disclosing the details of LVMH Moet Hennessy Louis Vuitton SE’s deal to carve up the second-biggest diamond ever recorded in the history books.On Thursday, Lucara Diamond Corp. said it had entered into a collaboration with LVMH that will see the 1,758-carat Sewelo diamond, which is roughly the size of a tennis ball, turned into Louis Vuitton jewelry. The stone’s name means “rare find.” LVMH is probably one of the few luxury groups that could pull off such a coup.But this is no vanity project. It comes hard on the heels of LVMH’s close to $16 billion purchase of Tiffany & Co., the go-to destination for engagement rings wrapped in that iconic little blue box. If that indicated the French company’s intent in jewelry, this leaves no doubt.It’s not yet clear how exactly the rough diamond will be used. Louis Vuitton has been expanding in fine jewelry, and with its Maison Vendome flagship store has a dedicated space for the category with its own entrance on the Place Vendome, the epicenter of Paris jewelry retailing. The group’s other jewelry houses include Bulgari, Fred, Chaumet, and the soon-to-be-added Tiffany. Christian Dior, meanwhile, has the potential to sell lots of pricey adornments to its fashionista fans.However it eventually polishes up, the Sewelo will be part of the classic luxury playbook.  LVMH will likely create several extremely high-end pieces  to establish a sense of exclusivity. While only a small number of customers may be wealthy enough to purchase these, many more will be able  snap up Tiffany bangles or Louis Vuitton rings. LVMH is counting on the stone to encourage these purchases, too. It’s the diamond-encrusted equivalent of sending extravagant creations down the catwalk to sell trunk loads of Louis Vuitton’s popular Neverfull bags, which sell for about 1,000 pounds ($1,307).Even taking this strategy into account, it’s likely that LVMH will seek to take Tiffany upmarket. There’s scope to increase its margins by jettisoning lower-price products and selling more high-end pieces. The allure of the Sewelo will help in this process, too.The luxury jewelry market is growing strongly, with particular demand for items boasting a designer label. Bain & Co. estimates that excluding currency fluctuations, sales rose 9% in 2019, in contrast to watches, where sales fell 2%. Timepieces have been hurt not only by the unrest in Hong Kong but by the segment’s continued disruption by smart and connected watches. Jewelry faces no such technological shifts. So there’s plenty of room for LVMH to expand.A more muscular rival is a worry for companies including Richemont, which owns Van Cleef & Arpels and Cartier, as well as Swatch Group AG, which owns Harry Winston. It could also make it harder for LVMH’s French archrival Kering SA, which also has scope to sell more jewels, to do so. Luca Solca, analyst at Bernstein, has suggested that a merger between Richemont and Kering would be a formidable response.LVMH’s Sewelo gem gambit is not without some potential pitfalls. At the moment it is a rough stone, whose outer surface is still covered in a layer of carbon. It’s not yet clear what kind or quality of polished gem it will reveal. Lucara Diamond previously said it may not deliver the highest standard.Whatever emerges, the stone’s size alone will make for an interesting story for LVMH’s marketing team. And with the group being at the cutting edge of fashion, it may be bolder and more creative than a diamond dealer, whose primary concern is usually how many carats can be secured in order to maximize the sale price. Add in the halo effect around the jewelry maisons — the Sewelo will be shown to clients and press at the Paris couture shows next week before embarking on a world tour —  and there’s even less of a risk.So even if the Sewelo doesn’t turn out to be as much of a sparkler as hoped, it will still help LVMH sell plenty of other baubles.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Moody's

    Morgan Stanley Bank of America Merrill Lynch Trust 2016-C30 -- Moody's affirms eight classes of MSBAM 2016-C30

    Rating Action: Moody's affirms eight classes of MSBAM 2016- C30. Global Credit Research- 16 Jan 2020. Approximately $681 million of structured securities affected.

  • GlobeNewswire

    IBKC, THOR, TIF, and AMTD SHAREHOLDER ALERT: Rigrodsky & Long, P.A. Reminds Investors of Investigations of Buyouts

    WILMINGTON, Del., Jan. 09, 2020 -- Rigrodsky & Long, P.A. announces that it is investigating: IBERIABANK Corporation (NASDAQ GS: IBKC) regarding possible breaches of.