Holiday sales rose at Tiffany & Co. despite challenges in Japan and Hong Kong. The jewelry company experienced double-digit sales increases in mainland China, which were offset by Hong Kong’s declines, The Wall Street Journal reported.
Global sales climbed approximately 1 percent to 3 percent from Nov. 1 through Christmas Eve in comparison to the same time in the prior year. Japan, however, turned out to be a challenge for the company, with sales declining 12 percent to 14 percent over the period after taking out currency fluctuation impacts.
Sales in the retailer’s Asia-Pacific region – which includes greater China – increased 7 percent to 9 percent after adjusting for the movements of currency. In the Americas, sales increased 2 percent to 4 percent. Performance was stronger in Europe, where the New York-based company noted a sales increase of 3 percent to 5 percent. Tiffany’s shares were not changed in premarket trading on Thursday (Dec. 26).
In November, news surfaced that LVMH had reached an agreement to purchase Tiffany & Co. for $16.2 billion or $135 a share in cash. LVMH’s shares were trading 1.4 percent higher on Nov. 25 following the announcement.
LVMH’s and Tiffany’s boards approved the deal, and the transaction is forecasted to close in the middle of next year, subject to approval by regulators and by Tiffany’s shareholders.
LVMH CEO Bernard Arnault said, per earlier reports, that the firm is seeking “to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands.”
The fashion company noted in a statement that “the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States.” LVMH has amassed a sizable luxury brand portfolio in various retail sectors, from fashion to perfume. Its notable brands include Louis Vuitton, Dom Perignon, Moët & Chandon and Givenchy.