Financier Nelson Peltz’s Trian Fund Management said in a filing with the Securities and Exchange Commission Monday that it wants to help Tiffany & Co. ramp up the luxury jeweler’s performance.
The filing by the investment fund, which is said to hold 7.5 million shares, or a 5.5 percent stake in the company, said Tiffany is underperforming compared with the competition and described the stock as “undervalued in the marketplace.”
After several meetings and discussions with senior management and the firm’s board, Tiffany agreed to take in Trian’s ideas and strategies to improve and grow the company.
Trian wants to boost Tiffany’s margins per share by assisting on strategy, exploring additional global expansion opportunities and evaluating non-core businesses. Trian is not seeking board representation at Tiffany’s annual shareholder meeting.
Tiffany has lately been pushing lower-priced goods, such as sterling silver charms starting at $100, in addition to its high-end Blue Book jewelry, with prices into the millions of dollars. Last summer, the company completed a five-year renovation of its famed Manhattan flagship. Tiffany has also tapped modernist designer Yabu Pushelberg to design its new Wall Street store.
In January, Tiffany posted robust holiday results, with sales that rose 15 percent to $818.1 million during the Nov. 1 through Dec. 31 period. On a constant-exchange basis, sales rose 14 percent, while worldwide comparable store sales rose 7 percent. Tiffany stock closed Monday at a 52-week high of $45.06, up $2.20, or 5.13 percent, in New York Stock Exchange trading.