Supplier BulletinSep 18, 2025
Will Your Design Define 2026? Enter The Spectrum & Cutting Edge AwardsSponsored by American Gem Trade Association
EditorsDec 09, 2019
What Tiffany’s Acquisition Means for the Jewelry Industry
Looking at what makes Tiffany & Co. worth $16 billion says a lot about what consumers value, Associate Editor Lenore Fedow writes in her analysis of the deal.
A “Tiffany Setting V” band ring , a “Tiffany True” engagement ring, a “Tiffany Soleste” band ring, and a “Tiffany T True” narrow ring. Luxury conglomerate LVMH is set to acquire the well-known jeweler in a deal valued at $16.5 billion. (Photo credit: Tiffany & Co.)
Life as the resident retail reporter at National Jeweler can be a bit of a bummer.
It’s an unofficial and self-bestowed title, but if stores are closing or companies are going bankrupt, I tend to cover it.
Truly, I like my beat. I do my best work when I’m elbow-deep in quarterly reports and court documents.
But when the rumors of LVMH’s acquisition of Tiffany & Co. began to fly, I felt a bit uneasy.
As a lifelong New Yorker, I have a soft spot for Tiffany. My everyday jewelry, the pieces I consider a part of me, all came in a little blue box.
I see the company as an American icon and quintessentially New York, and I wasn’t sure how to feel about a French luxury conglomerate buying it.
As a reporter covering retail, I mulled over what the deal would mean for Tiffany and, more broadly, for the jewelry industry at large.
So I picked the brains of experts and analysts, and I’ve come to you with my findings.
Here’s what makes Tiffany so valuable and why those factors matter to the overall industry.
Tiffany brings a strong brand to the table.
Amid reports of a potential acquisition, Tiffany confirmed in October it had received an unsolicited bid from LVMH for $120 per share, valuing the company at $14.5 billion.
After talks with LVMH, Tiffany reportedly asked the company to up the bid to $130, believing the company was worth more.
And Tiffany was right. The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
Tiffany was able to command big bucks, in part, because of the strength of its brand.
Flavio Cereda, an equity analyst at Jeffries, stated in a note written prior to the deal that Tiffany’s “brand equity and the strength of the image of its iconic 1837 Blue Box are more valuable than the current financials suggest.”
“LVMH, with all its brands, does not have a strong, solid diamond jewelry brand like Tiffany or that caters to Tiffany’s clientele,” industry analyst Edahn Golan wrote in an email to National Jeweler.
LVMH’s watch and jewelry portfolio consists of Chaumet, Bulgari, Fred, Hublot, TAG Heuer, and Zenith.
“Of the six companies in LVMH’s watch & jewelry group, only Chaumet is a diamond jewelry company, which means that the group has a lot of room to grow,” he said.
From its trademark Tiffany Blue color to the white ribbon around its
boxes, Tiffany’s strong brand presence is a valuable asset.
The rise of brands was a major takeaway from De Beers’ 2019 Diamond Insight Report, which noted the popularity of branded jewelry, particularly in the diamond engagement ring space.
Branded jewelry represents two-fifths of sales of commitment jewelry in the United States, said De Beers.
The report also highlighted the resonance of brands with same-sex couples and millennials.
Tiffany’s vertical integration is valuable.
“Tiffany checked all the boxes,” industry analyst Paul Zimnisky said in an interview with National Jeweler Friday, noting that while the standalone brand was the most important aspect of the deal, its vertical integration is certainly the second.
Luca Soltani, senior research analyst for luxury goods at research firm Bernstein, echoed Zimnisky’s sentiment on vertical integration.
“It is clearly an advantage—especially when we look at the bridal products,” Soltani said in an email to National Jeweler.
Zimnisky wasn’t surprised by the acquisition, as rumors had been swirling in the space for a while, but said he was surprised LVMH didn’t make a bid last year during the stock market sell-off.
Then again, “not a lot of acquisitions could move the needle for them,” he said, noting the size and wealth of the luxury conglomerate.
LVMH has the money to spend, but what it lacks are the sourcing and manufacturing connections that Tiffany maintains.
LVMH Chief Financial Officer Jean-Jacques Guiony said as much in a conference call with analysts following the deal, highlighting Tiffany’s “very high level of vertical integration, compared with our brands.”
“[Tiffany] realized early on that vertical integration will give it better access to the goods it needs, and at better prices too,” said analyst Golan.
The company’s vertical integration efforts began 20 years ago, Tiffany CEO Alessandro Bogliolo said in an interview with Bloomberg.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002.
It’s a De Beers sightholder and has inked long-term rough supply agreements with Alrosa and Dominion Diamond.
Bogliolo noted that 80 to 90 percent of its polished diamonds above 0.18 carats come from its workshops.
Tiffany also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor, a company spokesperson confirmed.
At a time when provenance and supply chain transparency are becoming increasingly important to consumers, Tiffany is ahead of the curve.
The jeweler began telling consumers the origin of its diamonds in January through its “Diamond Source Initiative.”
In that same Bloomberg interview, Bogliolo estimated the move toward sustainability cost Tiffany tens of millions of dollars over the years but added that it differentiates Tiffany from other jewelry companies.
“The reason why we are so selective with our sourcing is to avoid either mines that are not compliant with safety requirements, environmental protection, [and] human rights respect,” he said.
Tiffany, for example, does not source from Zimbabwe or the Congo due to internal issues in the countries, even if the diamonds meet Kimberley Process standards, he said.
“Tiffany is a very big player in all sorts of diamonds, and it’s something where the sourcing is not easy to do, and we expect to benefit from that,” LVMH’s Guiroy said on the call.
Tiffany boarded the sustainability train early.
With Tiffany’s vertical integration comes its ability to have a greater say in the means of production, a valuable asset at a time when climate change and environmental issues are weighing heavy on the minds of many consumers.
The younger, affluent generation are socially and environmentally conscious and hold luxury brands to high standards, particularly sustainable and ethical production processes, said Deloitte in its Global Powers of Luxury Goods 2019 survey.
The rise of brands was a major takeaway from De Beers’ 2019 Diamond Insight Report, which noted the popularity of branded jewelry, particularly in the diamond engagement ring space.
Branded jewelry represents two-fifths of sales of commitment jewelry in the United States, said De Beers.
The report also highlighted the resonance of brands with same-sex couples and millennials.
Tiffany’s vertical integration is valuable.
“Tiffany checked all the boxes,” industry analyst Paul Zimnisky said in an interview with National Jeweler Friday, noting that while the standalone brand was the most important aspect of the deal, its vertical integration is certainly the second.
Luca Soltani, senior research analyst for luxury goods at research firm Bernstein, echoed Zimnisky’s sentiment on vertical integration.
“It is clearly an advantage—especially when we look at the bridal products,” Soltani said in an email to National Jeweler.
Zimnisky wasn’t surprised by the acquisition, as rumors had been swirling in the space for a while, but said he was surprised LVMH didn’t make a bid last year during the stock market sell-off.
Then again, “not a lot of acquisitions could move the needle for them,” he said, noting the size and wealth of the luxury conglomerate.
LVMH has the money to spend, but what it lacks are the sourcing and manufacturing connections that Tiffany maintains.
LVMH Chief Financial Officer Jean-Jacques Guiony said as much in a conference call with analysts following the deal, highlighting Tiffany’s “very high level of vertical integration, compared with our brands.”
“[Tiffany] realized early on that vertical integration will give it better access to the goods it needs, and at better prices too,” said analyst Golan.
The company’s vertical integration efforts began 20 years ago, Tiffany CEO Alessandro Bogliolo said in an interview with Bloomberg.
Tiffany established Laurelton Diamonds, a wholly owned manufacturing subsidiary, in 2002.
It’s a De Beers sightholder and has inked long-term rough supply agreements with Alrosa and Dominion Diamond.
Bogliolo noted that 80 to 90 percent of its polished diamonds above 0.18 carats come from its workshops.
Tiffany also holds a stake in a diamond mine in South Africa owned by Canadian mining company Diamcor, a company spokesperson confirmed.
At a time when provenance and supply chain transparency are becoming increasingly important to consumers, Tiffany is ahead of the curve.
The jeweler began telling consumers the origin of its diamonds in January through its “Diamond Source Initiative.”
In that same Bloomberg interview, Bogliolo estimated the move toward sustainability cost Tiffany tens of millions of dollars over the years but added that it differentiates Tiffany from other jewelry companies.
“The reason why we are so selective with our sourcing is to avoid either mines that are not compliant with safety requirements, environmental protection, [and] human rights respect,” he said.
Tiffany, for example, does not source from Zimbabwe or the Congo due to internal issues in the countries, even if the diamonds meet Kimberley Process standards, he said.
“Tiffany is a very big player in all sorts of diamonds, and it’s something where the sourcing is not easy to do, and we expect to benefit from that,” LVMH’s Guiroy said on the call.
Tiffany boarded the sustainability train early.
With Tiffany’s vertical integration comes its ability to have a greater say in the means of production, a valuable asset at a time when climate change and environmental issues are weighing heavy on the minds of many consumers.
The younger, affluent generation are socially and environmentally conscious and hold luxury brands to high standards, particularly sustainable and ethical production processes, said Deloitte in its Global Powers of Luxury Goods 2019 survey.
“This implies an important lesson for luxury brands that want to retain these customers: they need to evolve towards new models of ethical and sustainable luxury.”
In addition to its diamond sourcing standards, the jeweler has been mindful of metals.
A decade ago, Tiffany was the first jewelry company to speak out against the development of the never-built Pebble Mine in Alaska’s Bristol Bay, holding a screening of a documentary about the importance of the watershed, “Red Gold,” in New York.
It was one of the first jewelers to use gold sourced from the “Salmon Gold” initiative, which aims to mine gold in a way that’s mindful of the habits of salmon and other fish.
The Deloitte study highlights Tiffany’s responsible sourcing as well as its social and environmental work, particularly its philanthropic foundations focusing on reef conservation and awareness for responsible mining.
Tiffany created its “Save the Wild” collection in 2017, donating all profits, totaling more than $5 million, to the Wildlife Conservation Network.
And the company’s over-the-top holiday catalog offers an 11-day safari in Kenya and a set of animal-shaped diamond brooches, with a portion of the proceeds going to the animal conservation charity.
Tiffany is doing well in a key market—China.
Luxury brands across the board are grappling with U.S.-China trade tensions. Simultaneously, political unrest in Hong Kong is weighing heavy on balance sheets.
Tiffany, however, is still seeing double-digit growth in mainland China and highlighted higher spending by locals in its third-quarter results.
The jeweler currently has 35 stores in mainland China and 10 in Hong Kong.
LVMH’s third-quarter results also reported strong growth in Asia, and it has a strong enough foothold in the country to propel Tiffany even further in the growing market.
Jefferies analyst Cereda said LVMH may leverage the strength of Tiffany’s brand to target the Asian millennial market.
“I could definitely see that happening,” said Reginald Brack, executive director at NPD and an industry analyst on watches and luxury, in an interview with National Jeweler Friday.
“I think that Asian millennial luxury consumer is what most luxury brands now are trying to target. Tiffany is well-poised and positioned to capitalize on that with their immense brand recognition.”
The future of Tiffany may mean fewer stores.
Cereda noted Tiffany’s move into China may mean a “rethinking of the current product mix and its U.S. footprint.”
Bernstein analyst Soltani said Tiffany’s position in the United States is a strength, but that perhaps, “LVMH would want to upgrade the Tiffany flagship stores, and streamline the rest of the retail network.”
Tiffany’s flagship New York City store will undergo renovations after the holiday, and the retailer will move the store into a temporary, nearby space until it’s completed.
He said in secondary locations, Tiffany could “use a lighter (and smaller) retail format.”
NPD analyst Brack had the opportunity to visit a new Tiffany concept store in Tokyo, which he described as an “industrial loft space” that included a permanent DJ booth.
He said the items were more accessible, out there in the open to touch, and the space had a personalization bar.
An openness to change in an ever-changing retail environment is critical and when you have a strong brand, you can afford to experiment a little.
This deal speaks to the industry at large.
What I’ve taken away from my discussion with experts and analysts is this: Looking at what makes Tiffany worth $16 billion says a lot about what consumers value.
To compare Tiffany with independent jewelers is incongruous in some respects but, overall, understanding what matters to the customer is vital to any business.
Tiffany has: a strong brand, control of aspects of production, a focus on responsible sourcing and sustainability, and an eye for the retail experience.
Whether upping your social media game or talking more with your customers about the journey their jewelry has taken, you can take away something actionable from this historic deal.
In addition to its diamond sourcing standards, the jeweler has been mindful of metals.
A decade ago, Tiffany was the first jewelry company to speak out against the development of the never-built Pebble Mine in Alaska’s Bristol Bay, holding a screening of a documentary about the importance of the watershed, “Red Gold,” in New York.
It was one of the first jewelers to use gold sourced from the “Salmon Gold” initiative, which aims to mine gold in a way that’s mindful of the habits of salmon and other fish.
The Deloitte study highlights Tiffany’s responsible sourcing as well as its social and environmental work, particularly its philanthropic foundations focusing on reef conservation and awareness for responsible mining.
Tiffany created its “Save the Wild” collection in 2017, donating all profits, totaling more than $5 million, to the Wildlife Conservation Network.
And the company’s over-the-top holiday catalog offers an 11-day safari in Kenya and a set of animal-shaped diamond brooches, with a portion of the proceeds going to the animal conservation charity.
Tiffany is doing well in a key market—China.
Luxury brands across the board are grappling with U.S.-China trade tensions. Simultaneously, political unrest in Hong Kong is weighing heavy on balance sheets.
Tiffany, however, is still seeing double-digit growth in mainland China and highlighted higher spending by locals in its third-quarter results.
The jeweler currently has 35 stores in mainland China and 10 in Hong Kong.
LVMH’s third-quarter results also reported strong growth in Asia, and it has a strong enough foothold in the country to propel Tiffany even further in the growing market.
Jefferies analyst Cereda said LVMH may leverage the strength of Tiffany’s brand to target the Asian millennial market.
“I could definitely see that happening,” said Reginald Brack, executive director at NPD and an industry analyst on watches and luxury, in an interview with National Jeweler Friday.
“I think that Asian millennial luxury consumer is what most luxury brands now are trying to target. Tiffany is well-poised and positioned to capitalize on that with their immense brand recognition.”
The future of Tiffany may mean fewer stores.
Cereda noted Tiffany’s move into China may mean a “rethinking of the current product mix and its U.S. footprint.”
Bernstein analyst Soltani said Tiffany’s position in the United States is a strength, but that perhaps, “LVMH would want to upgrade the Tiffany flagship stores, and streamline the rest of the retail network.”
Tiffany’s flagship New York City store will undergo renovations after the holiday, and the retailer will move the store into a temporary, nearby space until it’s completed.
He said in secondary locations, Tiffany could “use a lighter (and smaller) retail format.”
NPD analyst Brack had the opportunity to visit a new Tiffany concept store in Tokyo, which he described as an “industrial loft space” that included a permanent DJ booth.
He said the items were more accessible, out there in the open to touch, and the space had a personalization bar.
An openness to change in an ever-changing retail environment is critical and when you have a strong brand, you can afford to experiment a little.
This deal speaks to the industry at large.
What I’ve taken away from my discussion with experts and analysts is this: Looking at what makes Tiffany worth $16 billion says a lot about what consumers value.
To compare Tiffany with independent jewelers is incongruous in some respects but, overall, understanding what matters to the customer is vital to any business.
Tiffany has: a strong brand, control of aspects of production, a focus on responsible sourcing and sustainability, and an eye for the retail experience.
Whether upping your social media game or talking more with your customers about the journey their jewelry has taken, you can take away something actionable from this historic deal.
More on Editors
The Latest
SurveysSep 18, 2025
Deloitte Thinks the Holidays Will Be Merry, PwC Isn’t So Sure In its holiday report, PwC said the season will be more like jazz—improvisational and less predictable—than an easy-to-follow melody.
MajorsSep 18, 2025
Pandora to Open New Distribution Center in MarylandThe jewelry giant will relocate its existing facility to a larger space in Anne Arundel.
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment ProgramWith their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.
CollectionsSep 18, 2025
Ashley Zhang Launches Garçon New YorkThe designer, who is the creative force behind her namesake brand, has now started a new mini line focusing on chains for fathers and sons.
Weekly QuizSep 12, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingSep 18, 2025
SSEF Opens Applications for 2 Gemology Education Scholarships The awards include tuition for a course at the Swiss lab, economy flights, and hotel accommodation.
TechnologySep 18, 2025
Hill & Co. Launches AI Strategy ProgramThe 21-day program was designed to help jewelry retailers identify opportunities and eliminate inefficiencies with AI.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
AuctionsSep 17, 2025
Mythical Set of Patek Philippe Pocket Watches Expected to Sell for $10M+A set of four Patek Philippe “Star Caliber 2000” pocket watches is part of Sotheby’s upcoming auction in Abu Dhabi.
TrendsSep 17, 2025
Silvia Furmanovich’s Book Tells the ‘Journey of a Jeweler’The Brazilian jeweler’s latest book marks her namesake brand’s 25th anniversary and tells the tale of her worldwide collaborations.
WatchesSep 17, 2025
Bob’s Watches Acquires Vintage Rolex Won on ‘The Price is Right’ The Submariner Ref. 1680 with a Tiffany & Co. dial came from the original owner, who won it as a prize on the game show in the 1970s.
TechnologySep 17, 2025
Jewelers Mutual Launches Shipping Solution App for Shopify The new integration allows users to manage shipments directly from the Shopify dashboard.
CrimeSep 16, 2025
2 Robbery Suspects Killed in California Pawn Shop ShootoutSix people were shot last week at an Oakland cash-for-gold shop as employees exchanged gunfire with individuals trying to rob the store.
CollectionsSep 16, 2025
Chopard Adds New Designs to Its ‘Ice Cube’ Capsule CollectionThe jeweler has expanded its high jewelry offering, which launched last year, with new pieces featuring its cube motif that debuted in 1999.
SourcingSep 16, 2025
Natural Diamond Council Launches Retailer Accreditation ProgramBen Bridge Jeweler and Lux Bond & Green were a part of the pilot program.
SurveysSep 15, 2025
Resilient Shoppers to Boost Holiday Retail Sales, Says DeloitteIt’s predicting a rise in retail sales this holiday season despite economic uncertainty and elevated inflation.
SourcingSep 15, 2025
Gemfields Achieves $32M at High-Quality Emerald AuctionIt included the sale of the 11,685-carat “Imboo” emerald that was recently discovered at Kagem.
SourcingSep 15, 2025
AGTA Elects 8 Members to Board of Directors The newly elected directors will officially take office in February 2026 and will be introduced at the organization’s membership meeting.
EditorsSep 12, 2025
Out & About: Mining Sapphires in Rock Creek, MontanaAssociate Editor Lauren McLemore headed out West for a visit to Potentate Mining’s operation hosted by gemstone wholesaler Parlé Gems.
TrendsSep 12, 2025
Piece of the Week: Arunashi’s Fordite and Rhodolite EarringsFordite is a man-made material created from the layers of dried enamel paint that dripped onto the floors of automotive factories.
Events & AwardsSep 12, 2025
Al Gilbertson Wins 2025 Robert M. Shipley AwardGilbertson has worked as a researcher, jeweler, lapidary artist, appraiser, and business owner throughout his decades in the industry.
Policies & IssuesSep 11, 2025
Supreme Court to Hear Tariffs Case in November A decision likely won’t come until January 2026 at the earliest, and the tariffs remain in effect until then.
MajorsSep 11, 2025
Tabayer Opens Nordstrom Shop-In-ShopLocated in the revamped jewelry hall at the retailer’s New York City flagship, this opening is Tabayer’s first shop-in-shop.
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for ThatThe new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.
MajorsSep 10, 2025
Stuller to Swap Gold Scrap for Full Credit to AccountAs the gold price rises, the manufacturer is offering a 100 percent payout through Sept. 30 for gold clean scrap.
SourcingSep 10, 2025
Tech Meets Style in the New Loewe x Jacob & Co. HeadphonesJacob & Co. partnered with the German technology company on two pairs of headphones, one set with diamonds and the other with sapphires.
TrendsSep 10, 2025
Tiffany & Co. Archival Jewels Bring Life to ‘Frankenstein’Guillermo del Toro’s 2025 “Frankenstein” will feature 27 jewels and objects from the storied brand, including pieces from its archives.
