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The French luxury company was set to close the $16.2 billion deal with the U.S. brand on Monday, but a source familiar told Reuters they will give themselves another three months.
LVMH Moet Hennessy Louis Vuitton SE (PA:LVMH) agreed to buy Tiffany last year, and the terms of the deal allow one of the parties to push the deadline back to Nov. 24. Tiffany is exercising that option, according to the source, Reuters reported. The European Union has yet to approve the deal.
Tiffany is scheduled to report earnings on Wednesday, and analysts estimate earnings per share of 19 cents on revenue of $794 million. In June, it published results showing a loss per share of 53 cents compared to the expected earnings per share of 1 cent on sales of $555 million, versus the estimated $692 million.
In the second quarter, LVMH revenue was down 38% compared to the same period in 2019, with the U.S. and Europe seeing notably lower sales. Asia has seen an improvement in trends, with a strong rebound in China in particular, the company said in a statement.
