Tiffany & Co.’s transition under LVMH’s control has been fraught with challenges, primarily stemming from ambitious sales targets resulting in high employee turnover. Since its $16 billion acquisition, the jewelry titan has experienced a significant restructuring, but not without pitfalls.

While annual sales grew by around $1.5 billion, achieving these ambitious targets proved difficult for many staff. According to reports from former employees, unrealistic sales goals coupled with lower commissions led many salespeople to leave for competitors such as Cartier, taking their loyal customers with them. This staff exodus has added to the turbulence as Tiffany adjusts to LVMH’s strategies.

The efficiency of LVMH’s turnaround playbook is now under scrutiny. Despite LVMH’s focus on modernization, including star-studded marketing campaigns and luxury store upgrades, various factors—such as flagging consumer demand and inflation—have slowed growth. Tiffany’s flagship store has struggled to meet its sales targets, with reports indicating sales were far short of the projected figures.

To counteract the fallout, LVMH has sought fresh talent from within its other brands, raising concerns among existing staff about the erosion of expertise essential to the luxury jewelry market. Additionally, the company is working to enhance event-hosting strategies to attract wealthier clientele.

As LVMH’s leadership closely monitors Tiffany’s evolution, the pressure mounts, especially for Alexandre Arnault, who has been tasked with revitalizing the brand. Future performance will depend not only on implementing new marketing strategies but also on stabilizing the internal workforce.