Tiffany & Co Luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE is recovering from an epidemic and economic fallout as it attempts to abandon its $16.2 billion acquisition of jewelry chains.
In the past two months, global net sales have declined slightly from a year ago, and revenues based on 2019 data increased by about 25%.
The company’s cash balance has exceeded $1 billion at the end of September, and the year-end outlook is about $900 million.
“We still expect COVID-19 to substantially affect our results for the year, but we are very pleased with the way business rebounds after Q1 and continues to rebound and recover in Q3, especially mainland China. In America,” CEO Alessandro Bogliolo said.
Tiffany forced LVMH filed a counterclaim for the $16 billion deal agreed on Tuesday in November, claiming the reason the French group canceled the deal was “legally and factually unfounded”.
Tiffany also accused LVMH CEO Bernard Arnault of “using every means and opportunity to make sure LVMH pays the lowest possible price for the asset it wants.”
In late September, LMVH accused Tiffany of mismanaging her business during the epidemic. The company noted that while “burning cash and reporting losses” the jewelry chain paid the highest possible dividend.
In a statement, LVMH said, “No other luxury company in the world has done so during this crisis. I mentioned other examples of what I call mismanagement in filing, including capital cuts, marketing investments, and additional debt burdens.
Tiffany It fought against what LVMH has called “unfounded and misleading counterclaim”. It argued that it was another “blatant attempt” to evade the contractual obligation to pay the agreed price for Tiffany.
“Tiffany is in full compliance with the merger agreement, and we are confident that the court will agree in the trial and require certain performance of LVMH,” Tiffany Chairman Roger Farah said in a statement. “If LVMH had actually believed in the allegations of complaining, it would not have been necessary for LVMH to procure a letter from the French Foreign Minister as an excuse for refusing to close it.”