Luxury Jewelry maker, Tiffany & Co. (NYSE: TIF
) announced that it has renewed its agreement with Italian Jewelry designer Elsa Peretti, bringing relief for investors who were worried that ending deal with star designer would adversely dent results for a company already reeling under pressure.
At present, jewelry designed by well-known Italian designer constitutes 10 percent of total sales for Tiffany.
According to the deal, the New York based Company will continue to have exclusive rights to Peretti’s work and the licensing agreement last for 20 years.
Elsa Peretti, who also worked with Halston, a high-end jewelry designer, will get royalties and $47 million, according to Tiffany’s regulatory filing on Wednesday.
The agreement is likely to soothe both investors and Company’s nerves as Elsa Peretti said last year that she was disinclined to continue her contract with Tiffany & Co. According to Tiffany & Co, ending agreement with Elsa Peretti might have badly hurt its business.
Meanwhile, Jefferies Group has maintained its “hold” rating on shares of Tiffany & Co. In its research report to investors on Wednesday, the firm said that it currently keeps a price target on stock at $55.
Several other Wall Street rating firms have commented on Tiffany & Co’s stock, lately.
While analysts at Credit Agricole slashed their price target on shares of Tiffany & Co. from $69.00 to $65.00, keeping an “ outperform “rating on the stock, analysts at TheStreet, in a research note to investors on Dec 28, maintained “buy” rating on shares of Tiffany & Co.
On Wednesday, shares of Tiffany & Co gained 2.77 percent, closing at $58.93.