LVMH Moët Hennessy Louis Vuitton, the parent company of Tiffany & Co. since 2021, has outlined ambitious plans for a comprehensive overhaul of Tiffany’s expansive network of over 300 stores, as reported by IDEX Online.
In a recent conference call, Jean-Jacques Guiony, Chief Financial Officer of LVMH, revealed the company’s intention to complete a significant transformation of Tiffany’s store network within a maximum of “three, four years.” Guiony acknowledged the substantial capital investment required for this endeavor, stating that the existing store network falls short of the brand’s aspirations. He emphasized that only a handful of previously renovated stores meet their standards, necessitating a considerable effort in terms of both time and financial resources to achieve the desired outcome.
LVMH’s performance has remained robust, as indicated by its revenue of €42.2 billion (approximately $46.5 billion) for the first half of 2023, reflecting a notable 15% year-on-year increase, according to information available on the company’s website. The Watches & Jewelry business group experienced organic revenue growth of 13% in the same period, while profit from recurring operations saw a 10% uptick. Within the jewelry sector, Tiffany witnessed remarkable success, particularly with the reopening of the iconic “Landmark” store in New York. Bulgari’s performance was characterized by strong growth, and the launch of the high jewelry Mediterranea collection garnered exceptional results. Chaumet and Fred also experienced robust growth over the first half of the year.
LVMH’s strategic decision to revamp Tiffany’s store network underscores its commitment to enhancing the brand’s presence and aligning it with their renowned standards of luxury and excellence.
