Tiffany's Staff Exits Test LVMH's Turnaround Playbook
Ambitious sales targets and lower commissions for some salespeople have led them to defect for competitors, taking some of their loyal clients with them
The staff exits put increasing pressure on Alexandre Arnault to pick up the pace on Tiffany’s turnaround.
Photographer: Anthony Wallace/AFP/Getty ImagesLVMH’s $16 billion purchase of Tiffany & Co. transformed the luxury goods powerhouse into one of the biggest jewelry sellers in the world. Three years later, the most expensive luxury acquisition on record doesn't appear to be going according to plan.
The jewelry industry is slowing. Sales at Tiffany’s stores are missing the company’s ambitious goals. And the head of LVMH, tycoon Bernard Arnault, is counseling patience with the jeweler’s turnaround. “You cannot do things instantly,” he said in a Bloomberg Businessweek interview published in June.