Is Swarovski following in Tiffany & Co. footsteps?

Rumors of IPO were quashed by a Swarovski spokesperson in March despite the four-year dry spell for family and top-tier investors.

Swarovski’s financial woes might lead to a sale or merger like Tiffany & Co.

Recent Swarovski business moves mirror Tiffany and Co.’s moves before the LVMH acquisition.

In the early twenty-teens, Tiffany suffered losses year over year. They combated the losses with a new CEO, a soft rebrand including a redesigned store, and additional product lines. Growth returned in 2017. Two years later, in 2019, LVMH reached out with an offer. They completed the transaction in 2020, and Tiffany took refuge under the LVMH umbrella.

Swarovski seems to be following a similar path. The company was losing market share in the second half of the twenty-teens. To bolster business, they repositioned the brand in 2019, focusing on crystal offerings rather than accessories. During the COVID years, Swarovski tried to entice buyers with robust online expansion, a redesigned store, lab-made diamonds, and an updated logo. In 2022, they claimed gains, but now we know they are not paying their investors like they should be. Add that to the rumors of an IPO, which the spokesperson denies, and things begin to look familiar. 

Will LVMH send an offer? Only time will tell.

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