Legendary jewelry store Tiffany & Co. was bought by LVMH for $15.8 billion in January 2021, and since then, Alexandre Arnault, son of billionaire and LVMH CEO Bernard Arnault, has revamped the brand to attract a younger generation – its latest ambassadors include Jay-Z and Beyoncé. That collaboration has helped Tiffany increase its value by more than 18%, and it is growing faster than ever. According to Arnault, the collaboration with Nike aims to take Tiffany jewellery into the fashion world, where LVMH – Louis Vuitton, LOEWE, and Rimowa have also found success. Today, in addition to the iconic store on 5th Avenue in New York, Tiffany brand products fill more than 300 retail stores around the world.
LVMH's shares performance over the past 5 years. (Source: Google) *
The Tiffany brand has previously engaged in fashion to expand its reach, launching collaborations with Supreme, Fendi and Patek Philippe, as well as artist Daniel Arsham and the Andy Warhol Foundation for the Visual Arts. The new 'wind in the sails' has undoubtedly also benefited the shares of parent company LVMH, which rose slightly following the announcement. Over the past year, the company's shares on the Paris Stock Exchange have risen by 14 percent and, looking at 5-year performance, we can see a 223 percent increase.*
Details of the collaboration were released on Tuesday
Nike x Tiffany & Co. Air Force 1 1837 in black suede with a blue swoosh (Nike's signature symbol) and a silver element on the heel will launch on March 7, 2023. These sneakers were created as a tribute to the 40th anniversary of the first Nike Air Force 1 model. Tiffany and Nike posted the first news of their exclusive product on Instagram, Facebook, and LinkedIn already this past weekend. They provided all the images and details to the public on Tuesday. The estimated retail price is $400 per pair. It was this fact that didn't excite sneaker lovers, as well as the minimalist use of the typical Tiffany blue colour. Despite this, the announced product has caused a stir in the fashion world and promises high interest in the result of this collaboration.
The collaboration didn't stop at sneakers
Along with the sneakers, a silver collection will also be released, which includes a shoehorn, a shoe brush and a decorative dubrae pendant on the laces. The shoes will be available at two Tiffany & Co. stores in New York City and select Nike stores in North America, as well as globally through Nike's SNKRS app.
Nike x Tiffany & Co. Air Force 1 1837
Jewellery as a potential investment for the future
According to Grand View Research, the entire jewelry industry is projected to grow at 8.5% to reach $518 billion by 2030. [1] Naturally, Nike wants to participate in this and, together with Tiffany & Co, has entered the market in a unique way. Nike also stated that Tiffany's sneakers are the first ever "legendary pair" of shoes it has produced. We will see if the collection sells as expected and if this will be reflected in the shares' performance of the two mentioned companies. In fact, unlike LVMH, NIKE shares trading on the US NYSE are in the red on an annual basis, although looking at five-year performance we can see growth of 70 percent.*
Nike's shares performance over the past 5 years. (Source: Google) *
Olivia Lacenova, Analyst at Wonderinterest Trading Ltd.
*Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
