The Board of Directors of Tiffany & Co. (NYSE: TIF) has declared a regular quarterly dividend of $0.58 per share of Common Stock. The dividend will be paid on July 10, 2020 to shareholders of record on June 22, 2020. Future dividends are subject to declaration by the directors.
Tiffany's (TIF) fourth-quarter fiscal 2019 results reflect improved earnings and sales. Sales grow in most regions.
Luxury jeweler Tiffany & Co on Friday pointed to a significant hit to results this year as it temporarily closed stores around the world, and said it had lost about half of its operating days in mainland China since the coronavirus outbreak. Tiffany earlier this week said it would temporarily close several stores, including its Fifth Avenue flagship store in New York, and reduce working hours at other outlets, to contain the spread of the novel coronavirus. The company, which is being bought by French luxury goods giant LVMH, warned that the outbreak has had a significant effect on its performance so far this year.
CEOs and representatives from more than 330 businesses, including Capital One, General Mills, Microsoft, Nike, Salesforce, Visa and others are calling on bipartisan federal lawmakers to build back a better economy by infusing resilient, long-term climate solutions into future economic recovery plans.
The France-based owner of luxury brands such as Louis Vuitton offered to buy Tiffany for $16.2 billion last November, and the deal is expected to close mid-2020. Tiffany said it still aimed to close the deal by that time, subject to the review by the Australian Foreign Investment Review Board (FIRB). The FIRB is experiencing delays in processing transactions and requested extending the statutory review deadline of April 8 to until Oct. 6, which LVMH has accepted, according to a regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/98246/000156459020015787/tif-8k_20200407.htm.
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(Bloomberg Opinion) -- A flagship Hermes International store in Guangzhou reportedly took in $2.7 million on its first day reopening after the coronavirus lockdown, the biggest daily haul for a boutique in China, according to fashion trade bible WWD.The French luxury brand best known for its Kelly and Birkin bags may not be alone in enjoying the phenomenon that has been referred to as “revenge spending.” The term, coined to describe pent-up consumer demand in the 1980s after the poverty and chaos of the Cultural Revolution, is now being applied to splurging by Chinese shoppers as the virus recedes.LVMH, hit by a 17% decline in first-quarter sales excluding currency movements and acquisitions, said late Thursday that Chinese consumers were once again enthusiastically embracing its brands, including Louis Vuitton and Christian Dior. And my Bloomberg News colleagues reported that sales at LVMH stores on the mainland were up 50% year-on-year in the past three weeks.Cosmetics maker L’Oreal SA also pointed to a recovery in the region’s demand for beauty products. Of course, that may be a function of what’s called the “lipstick” index, where when times are tough consumers tend to buy smaller treats rather than more expensive items. But the signs do bode well for demand from Chinese consumers, who could account for 44% of luxury spending this year, according to analysts at Jefferies.Still, none of this may be enough to rescue second-quarter trading, nor the full year.First of all, there’s no guarantee that the rebound will be sustained. What’s more, during normal times the Chinese make the majority of their vanity purchases when they travel abroad. In this new post-coronavirus era, there has been an initial trend toward more domestic spending, and that could accelerate further. But bigger impulse purchases are still more likely to happen when people can finally visit cities such as Paris or Milan. With airplanes still grounded in many places and borders closed, travel is set to be severely constrained for some time, and that will be a drag on industry growth.Meanwhile, stores in Europe and the U.S. remain closed. When they finally reopen, brands will find it very difficult to compensate for fewer Chinese visitors. Massive job losses and all of the other economic hardships brought by lockdowns means they won’t be able to count on local shoppers to make up the difference. Consultants Bain & Co. estimate that global personal luxury goods sales could fall as much as 35% this year, with a mid-point scenario at 22-25%. This would be the worst decline in modern luxury industry history.Despite the inevitable industry downturn this year — one that will possibly stretch into 2021 — LVMH looks to be one of the best-placed luxury groups.With revenue of 52 billion euros ($56 billion) in 2019, more than three times that of its nearest rivals, LVMH has significant scale and a strong stable of brands, led by Louis Vuitton and Dior but also including Fendi and Celine in fashion and the Sephora beauty stores. The 10% decline in fashion and leather goods sales, excluding currency movements and acquisitions, is better than might have been expected. The company run by billionaire Bernard Arnault also has a diverse portfolio, both geographically and in terms of products, which include spirits and beauty lines too. This gives it scope to cut costs, but also, crucially, to invest when competitors may be weakened.There are some worries. For example, the $16 billion acquisition of American diamond-jewelry icon Tiffany & Co. will now be more of a challenge. (LVMH indicated on Thursday that it would still go ahead with the deal.) And it also has exposure to travel retail through major duty-free chain DFS, which may be depressed for some time.So LVMH won’t be immune from the continued disruption to luxury goods sales. But as it demonstrated in the first quarter it should be more than able to hold its own.This 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.
Tiffany (TIF) delivered earnings and revenue surprises of 4.65% and -0.15%, respectively, for the quarter ended January 2020. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg Opinion) -- A diamond is forever and so, perhaps, is Bernard Arnault’s interest in Tiffany & Co. Investors have been having some doubts that the chairman and founder of LVMH Moet Hennessy Louis Vuitton SA would deliver on his $16 billion takeover of the storied jeweler. But right now, Arnault is behaving like a classic luxury buyer.The bid for Tiffany is a long-term investment. Since the deal was agreed in November, the outbreak of the coronavirus has brought an abrupt end to luxury spending, first in China, and now in Europe and the U.S. Bernstein analyst Luca Solca estimates a decline of 20% in industry sales before currency movements this year, assuming a recovery in the second half, and a fall of 25-30% in the event of a global recession.Tiffany’s stock price is supported by the $135-a-share offer, but touched a year-to-date low of about $111 earlier this week. That large spread suggests an element of uncertainty the deal will actually close.Shareholders in the U.S. group approved the transaction in early February. Even with the collapse of luxury goods demand, financing shouldn’t be an issue. LVMH raised about $10 billion in a bond sale last month. Bernstein estimates net debt could be in the range of between 1.5 times and 2.5 times Ebitda at the end of this year, depending on how long the pandemic lasts. That’s hardly a stretched balance sheet.The question is whether there is any provision in the fine print of the deal agreement that LVMH lawyers could use to walk away — and whether Arnault would even want to if there was. Wriggling off the hook would damage Arnault’s reputation and send a terrible message to investors about the strength of LVMH.The company would also miss out on the long-term potential of Tiffany. Expanding in jewelry is a deeper strategic priority for LVMH. Trophy assets never come cheap, and if LVMH balked, it might struggle to get a second hearing especially if other suitors emerged. That all fits with what Arnault is doing — mulling the purchase of Tiffany shares in the market, below his offer price. This would be a pragmatic way to try to bring down the overall cost of the deal, without trying to renegotiate, or pressing the panic button.Of course, staying the course has some cost too. Tiffany needed some polish even before the luxury and the non-food retail industry shuttered stores in response to the Covid-19 outbreak. Elevating the brand just got even harder. And by sticking with Tiffany, LVMH is tying up financial resources that might otherwise be available to buy other assets. In reality, some of the smaller luxury houses have family shareholders who may be unwilling to sell out in a weak market.The Tiffany deal was never about buying the jeweler’s 2020 earnings. Just as well, for all sides.This 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.
More than 100 companies from the S&P 500 index now meet the Federal Reserve’s expanded criteria set out Thursday for its main street credit facility to help shore up small and medium-sized businesses hit by the pandemic.
Tiffany & Co. (NYSE: TIF) (the "Company") announced today that it is changing the format of its 2020 annual meeting of shareholders (the "2020 Annual Meeting") from an in-person meeting to a virtual one due to public health concerns surrounding the outbreak of the novel coronavirus (COVID-19) and to prioritize the health and well-being of its employees, shareholders and other community members. The original date and time of the 2020 Annual Meeting, as well as the matters to be voted on at the 2020 Annual Meeting, remain unchanged.
Louis Vuitton owner LVMH
In this article we will check out the progression of hedge fund sentiment towards Tiffany & Co. (NYSE:TIF) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and […]
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Moody's Investors Service, ("Moody's") has today affirmed LVMH Moet Hennessy Louis Vuitton SE's (LVMH) A1 long-term issuer rating and P-1 short-term issuer rating. Although the Coronavirus outbreak is creating a severe and extensive credit shock across many sectors, regions and markets, Moody's believes that LVMH's credit quality remains well-positioned within the A1 rating category.
Top luxury brands from Chanel to Louis Vuitton have increased prices of some of their most coveted products as they seek to make up for sales lost during weeks of coronavirus lockdowns. High-end houses have all reported brisk business in South Korea and the key Chinese market, where shops began to reopen in March, partly offsetting a slump in Europe and the United States - where restrictions are only just starting to be lifted. Chanel said on Wednesday it was increasing prices on its iconic handbags and some small leather goods by between 5% and 17% around the world as the pandemic had pushed up the cost of certain raw materials.
The you know what is about to hit the fan in America's retail sector because of the coronavirus pandemic.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Tiffany & Co. New York, April 29, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Tiffany & Co. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]