|Bid||0.00 x 0|
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|Day's range||107.34 - 108.48|
|52-week range||72.45 - 124.28|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
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Upscale retailers including Nordstrom Inc, privately-owned Saks Fifth Avenue and jeweler Tiffany & Co, reopened their large New York City flagship locations on Wednesday with reassuring signage and oversized jars of sanitizer to calm shoppers worried about cleanliness. With record-low tourism, and many New Yorkers working from out-of-town locations, the retailers' pool of potential shoppers is much smaller now, even in the generally slower summer months. Craig Johnson of Customer Growth Partners said that a lack of spending by tourists could bring a 9% to 12% average hit to upscale department stores' revenue compared with the year earlier.
The rebound has management feeling confident that the global business will recover from a huge global sales decline in the first quarter.
(Bloomberg) -- Tiffany & Co. persuaded lenders to grant more financial flexibility, a key step toward keeping a $16 billion sale to LVMH on course after the coronavirus and U.S. social unrest clouded the jeweler’s prospects.Lenders agreed to amend the global revolving credit facility “as a precautionary measure,” Tiffany said. Greater flexibility, including temporarily raising the limit on the company’s debt-to-earnings ratio, could help ensure that the deal comes to fruition because any breach of covenants might have given the French luxury giant a loophole to alter or back away from the purchase.Tiffany’s leverage ratio had been a cause for concern among LVMH executives who have reevaluated the deal amid the new economic landscape, CNBC reported earlier this month. It also reported that LVMH is looking to cut the proposed price, citing people familiar with the matter.As Tiffany seeks to bounce back from a plunge in sales caused by virus-induced store shutdowns, Chief Executive Officer Alessandro Bogliolo said in Tuesday’s statement that he is “excited we will be taking that journey with LVMH by our side.”The French luxury giant has said its board met last week to discuss its planned purchase. LVMH ruled out buying Tiffany shares on the open market even though they’ve been trading at a discount to the agreed price of $135 a share.Discount ShrinksSome of that discount has evaporated in recent days, with the shares trading at $124.73 on Tuesday in New York, up 2.1%.Tiffany reported a 43% decline in sales on a comparable, currency-adjusted basis in the first quarter. It also posted a loss of 53 cents a share, compared with analysts’ estimate of a loss of 27 cents, according to Bloomberg data. The company said it’s unable to provide a financial outlook for the rest of the year.Despite the hit to sales after stores around the world were closed for coronavirus-related lockdowns, business is bouncing back in China, the company said. In the mainland, retail sales rose 90% on a month-to-month basis in May.The recovery in China makes it difficult for LVMH to prove there is any material adverse event that occurred to try to change the terms of the deal, Mizuho analyst Greg Lantz wrote in a note.(Updates with analyst comment in last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Tiffany (TIF) posts soft first-quarter numbers, thanks to coronavirus-led store closures. However, it remains optimistic going ahead owing to investments made in Mainland China domestic business.
U.S. luxury jeweler Tiffany & Co, which is being bought by France's LVMH for $16 billion, said on Tuesday it had amended some of its debt agreements to gain more financial leeway amid the coronavirus pandemic after its quarterly sales sank 44%. Tiffany shares were up more than 2 percent in early trading.
Tiffany (TIF) delivered earnings and revenue surprises of -51.43% and -14.06%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg Opinion) -- There’s a long-running joke among my team’s deals writers and editors that in the corporate world, all roads eventually lead to mergers. Whatever is happening on the outside or on Wall Street — economic downturns, upturns, elections, currency fluctuations, CEO departures, CEO arrivals, good earnings, bad earnings, you name it — the case can somehow always be made, almost comically, that it’s an impetus for more corporate tie-ups. Warren Buffett would say that’s thanks to all the fee-hungry bankers playing to CEOs’ vain propensity for empire-building. Others say it’s the animal spirits at work.Whatever the case, the global pandemic is giving businesses plenty of reasons to get back to dealmaking. Yes, even social distancing may draw some companies closer together. How they do it will just require a bit more ingenuity in a post-handshake, post-Covid-19 world.As drugmakers race to develop vaccines and treatments for the virus, the pharmaceutical industry is an obvious place to expect renewed M&A activity. Already, drug giant AstraZeneca Plc has made a preliminary takeover approach to Gilead Sciences Inc., Bloomberg News reported Sunday, citing people familiar with the matter. That’s a potential $100 billion transaction. Executives from Johnson & Johnson also said in April that one of their top priorities is finding M&A that enhances its pipeline, citing the drugmaker’s financial strength. The company has $18 billion of cash and equivalents, and Ebitda exceeds debt.It was the pharma industry that kicked off the global megamerger wave last time around, in early 2014, as companies including AstraZeneca participated in a game of merger musical chairs. Soon enough, just about every industry had joined the deal frenzy, which lasted until earlier this year. It might have kept going had the virus not arrived.M&A globally is down 50% this year after the coronavirus quite literally brought the economy to a halt. But stay-at-home orders have been lifting across Asia, Europe and the U.S. And now that New York City — the unofficial headquarters of the M&A market — is beginning to reopen, deals that were in the works previously may pick up where they left off. Those are “low-hanging fruit” for bankers to try to get done, said Eric Becker, who manages the AltShares Merger Arbitrage ETF at Water Island Capital, a firm with $2.5 billion under management. “Those were situations where they were still able to hit the golf course and have the handshakes and look at each other face to face.”The M&A handshake may be over, but tech-savvy companies are already embracing the deal-by-video-chat method. Verizon Communications Inc. acquired videoconferencing business BlueJeans Networks for about $400 million in April, and though those talks began last year, the deal had to be finalized over BlueJeans video calls. Intel Corp. also bought Moovit Inc., an Israeli public-transit mapping startup, for $900 million last month. Moovit’s CEO told one publication that the deal came together over Zoom video calls.Not only could more companies use videoconferencing tools to do M&A, other tech-affiliated companies could copy Verizon by acquiring a service like BlueJeans to round out their business software offerings. That’s if working from home is going to be more common even after Covid-19 gets under control. And for deals in which physical assets and property are key, investors have cited the prospect of drones being used to conduct due diligence and avoid unnecessary travel and virus risks. Whether that’s a practical solution remains to be seen. Companies that announced deals just before the virus struck may experience buyer’s remorse. Tiffany & Co.’s acquirer, LVMH Moet Hennessy Louis Vuitton SE, is reportedly looking to pay a lower price than the $16.2 billion it offered in November, but Tiffany, of course, doesn’t want to renegotiate the terms. The spread between Tiffany’s share price and LVMH’s bid is wide at 10%, signaling investor apprehension that the deal will collapse.But then there are deals that make all the more sense because of the crisis. Uber Technologies Inc. is trying to acquire Grubhub Inc. to consolidate the market for food-delivery services as demand surges. Even as restaurants reopen, diners in heavily populated areas may still be reluctant to eat out. Becker also cited an ongoing trend of regional bank acquisitions, as smaller banks require better online capabilities and larger banks seek a deeper community presence.Vulnerable companies may already be bracing for activist shareholder interventions and unsolicited bids. The law firm K&L Gates LLP said that between March and mid-April more than two dozen U.S. public companies adopted so-called poison pills — more than the total number of S&P 500 companies that had these types of takeover protections in place last year. Private equity firms are also likely to be gearing up for buyouts. Such campaigns run the risk of igniting political and public scrutiny in a year marked by soaring unemployment and social activism over inequality. Other opportunistic buyers may soon come out of the woodwork. Amazon.com Inc., which isn’t a frequent borrower, aroused suspicion when it issued $10 billion of debt in recent weeks. Oracle Corp. also raised $20 billion. “When you start seeing some of these deep-pocketed buyers doing these large debt deals, it makes me think there's pent-up demand for M&A,” Becker said. One caveat: Regulators are ostensibly taking a tougher stance against potentially anti-competitive takeovers by tech giants. Even so, companies that see President Donald Trump losing the November election may want to act before less-merger-friendly Democrats take charge.There’s also the question of what Warren Buffett will do with Berkshire Hathaway Inc.’s $137 billion of cash. I suggested last week that Costco Wholesale Corp. should be its next bulk purchase. Wherever the crisis goes from here, all roads still lead to deals. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.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 & Co. (NYSE: TIF) today reported its financial results for the three months ended April 30, 2020 ("first quarter"). Worldwide net sales as reported and on a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see "Non-GAAP Measures") were below the prior year primarily as a result of the temporary closures of a substantial number of the Company’s stores around the world due to the COVID-19 pandemic. Unlike calendar year-end companies, the Company’s first quarter began February 1, meaning that the COVID-19 pandemic affected its entire quarter. The significant decline in net sales resulted in a net loss in the quarter.
Shares of luxury jeweler Tiffany & Co. (NYSE: TIF) have jumped today, up 6.7% as of 3:30 p.m. EDT, after luxury conglomerate LVMH Moet Hennessy (OTC: LVMHF) backed off its threat to renegotiate the terms of its deal to acquire Tiffany. Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, in a deal that was -- at the time -- expected to close this month.
In this episode of Market Foolery, Chris Hill chats with Motley Fool analyst Bill Barker about some of the latest earnings reports and other news from the markets. Analysts and investors cheer Zoom's revenue guidance.
Following news that multinational luxury and fashion goods titan LVMH Moet Hennessy (OTC: LVMHF) wanted to lower the price on its acquisition of Tiffany & Co. (NYSE: TIF), sources say that the jewelry company threatened to launch a lawsuit in response. Today, LVMH says it won't try to renegotiate its deal with Tiffany, prompting a more than 7% rise in Tiffany's share value as investors bid the stock up on the favorable news. Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, with a closing date originally set for June 2020, but postponed until October due to regulatory hurdles.
French luxury goods giant is not asking to renegotiate its $16.2-billion acquisition of U.S. jewelry chain Tiffany & Co after deliberating whether to do so, people familiar with the matter said on Friday. LVMH CEO Bernard Arnault has been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in cash, Reuters reported on Wednesday. LVMH also said on Thursday that its board had discussed the impact of the COVID-19 pandemic on its deal with Tiffany.
French luxury goods giant <LVMH.PA> is not seeking to renegotiate its $16.2 billion (£12.83 billion) acquisition of U.S. jewelry chain Tiffany & Co <TIF.N> after deliberating whether to do so, people familiar with the matter said on Friday. LVMH CEO Bernard Arnault had been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in cash, Reuters reported on Wednesday. LVMH has decided it will not raise the issue of repricing the deal with Tiffany for now, after it considered the legal hurdles involved, the sources said.
Maybe LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY) is trying to get a better price for Tiffany (NYSE: TIF) after all. It maintained, "LVMH is currently committed not to buy Tiffany shares." Acquiring the stock that way would have significantly lowered the cost of the deal as Tiffany's stock plunged about 20% or so to around $105 a share when the COVID-19 outbreak was declared a pandemic.
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LVMH <LVMH.PA>'s board met this week to discuss the fallout from the coronavirus crisis on its $16.2 billion purchase of U.S. jeweller Tiffany <TIF.N>, the luxury goods group said on Thursday, opening the door to a possible attempt to review the deal terms. LVMH, run by France's richest man, Bernard Arnault, agreed to buy Tiffany in November, before the retail business was hammered by the pandemic. Arnault is now exploring ways to reopen negotiations and potentially pressure Tiffany to lower the agreed deal price of $135 per share, people familiar with the matter told Reuters, including by examining its compliance with financial covenants.
LVMH agreed to acquire Tiffany in November, but the deal has yet to close, pending regulatory approvals. Arnault said at the time Tiffany would "thrive for centuries to come" under LVMH. Arnault has been in talks with his advisers this week to identify ways to pressure Tiffany to lower the agreed price of $135 per share in cash, the sources said.
Tiffany (TIF) stock loses 9% on reports stating that the LVMH deal could fall through on U.S. economic fallout from COVID-19 and the ongoing social unrest.
(Bloomberg Opinion) -- Even the most upmarket buyers like to get their money’s worth. No wonder LVMH Moet Hennessy Louis Vuitton SE is having second thoughts about its $16 billion takeover of Tiffany & Co., according to Women’s Wear Daily.Walking away from the deal, which is due to close shortly, wouldn’t be ideal after all the fanfare made about the merits of buying the iconic U.S. jewelry brand. But it would be remiss of LVMH Chairman Bernard Arnault not to try to get better terms — particularly since he has the advantage.The world has changed since the takeover was agreed in November. The Covid-19 pandemic has dented luxury goods demand with shops shuttered and sweatpants-wearing consumers locked down with nowhere to go. Industrywide sales could fall as much as 35% this year, according to Bain & Co. The civil unrest in the U.S. is another risk, particularly for an American brand.So, depending on the fine print in the purchase agreement, Arnault could try to wriggle out altogether. There are doubts that it will go ahead as planned. Tiffany shares closed at $117 on Tuesday, significantly lower than LVMH’s $135 offer price. But dropping the deal now, particularly if it led to a lengthy legal battle, could risk some reputational damage. It could also signal that LVMH, the world’s dominant luxury conglomerate, built on a history of strategic, successful acquisitions, isn’t so resilient after all. True, even after the pandemic, LVMH’s market capitalization is close to 200 billion euros ($224 billion). So Tiffany is a relatively modest transaction. But the French fashion giant won’t have escaped the maelstrom, not only in luxury goods, but in cosmetics, with its Sephora chain, and in duty-free travel retail, with DFS.Tiffany is still a prized asset, with huge potential if it can be elevated from simply affordable luxury to mega-bling. So Arnault is most likely to try to burnish his standing as a dealmaker by extracting better terms for his shareholders. Especially since Tiffany already needed some polish to achieve its potential, and the task will be even more difficult now. It will require significant investment both in the company’s product range and marketing.Against this backdrop, trying to save on the purchase price looks sensible. A precedent has already been set by Sycamore Partners, which tried to extract itself from its $525 million deal to buy lingerie brand Victoria’s Secret. In the end, L Brands Inc. ended up terminating the agreement. But it’s hard to see Tiffany doing this — it’s unlikely to want to pursue its turnaround plan in a such a difficult environment without a muscular parent. Given the luxury slump, it’s not obvious that Richemont or Gucci-owner Kering SA would step in.Of course, Arnault could take his chances, withdrawing now — if he can — with the aim of trying to buy Tiffany again later at a lower price. But that’s a risky strategy. Another friendly deal wouldn’t likely be forthcoming, and often once a trophy asset is lost, it doesn’t become available again.Arnault would be better off holding onto this bauble, and, like many luxury shoppers right now, trying to negotiate a hefty discount.This column does not necessarily reflect the opinion of the editorial board or 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.