Tiffany “was a sleeping beauty”, Arnault said, according to a Bloomberg translation of his remarks. “We decided to wake her up.”
LVMH acquired Tiffany about four years ago for US$16 billion, making it the most expensive luxury deal on record. On Tuesday, Arnault said that was an “excellent price”, adding that the jeweller’s 2024 profit was double what it was before the acquisition.
The LVMH chairman said Tiffany has laid off some employees since the acquisition because they haven’t been willing to meet higher sales targets.
“When you’re used to sleeping for 10 years, and all of the sudden you’re asked to become fierce — and when you’re expected to achieve a high objective — some people can’t, well, don’t accept that,” Arnault said.
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On Monday, Bloomberg News reported that since the acquisition, Tiffany has tied employees’ paychecks to sales goals that workers rarely met; reneged on a pledge to pay some bonuses and told store directors they were not doing enough to attract wealthy clients to exclusive gatherings, citing current and former Tiffany executives and employees who weren’t authorised to speak publicly.
Tiffany’s Manhattan flagship, called Landmark, reported sales in December that were roughly flat compared to a year ago, Bloomberg reported.
“Landmark reported an outstanding performance,” he said. When Tiffany renovates or opens a store, revenue increases by 25%, he added.
“We are very confident,” Arnault said. “Of course, we still have a lot to do.”
