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LVMH Promises to Go Ahead With Tiffany Purchase Despite Profit Plunge

Profits were hurt by travel restrictions imposed by COVID-19
Bulgari LVMH jewelry japan shop street
Credit: Lucian Milasan / shutterstock.com

LVMH, owner of global luxury brands including Louis Vuitton, Christian Dior, Sephora and Fendi, has published its first half of the year results, showing a deep plunge in profits but still promising to buy Tiffany & Co, IDEX Online reports.

 

tiffany flagship jewelry store in Shanghai
Credit: Tiffany & Co.

 

First-half operating profits totaled $1.96 billion – a 68% fall year-on-year. According to the French luxury powerhouse, “travel restrictions halted the usual influx of high-spending Chinese and US tourists to Europe’s fashion capitals, and the company was forced to slash spending on store leases, hiring and advertising”.

 

louis vitton jewelry tokyo
Credit: Iris Hortman

 

However, LVMH said it still plans to honor the $16.2 billion acquisition of Tiffany. LVMH’s chief financial officer Jean-Jacques Guiony said in an interview: “Tiffany’s results are clearly affected by the crisis. That said, we have signed a contract and we will respect it”.



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