CORRECTED-Tiffany reaches new deal with designer Elsa Peretti
(Corrects spelling of designer's given name in headline)
Jan 2 (Reuters) - Tiffany & Co and jewelry designer Elsa Peretti have reached a new 20-year license agreement, removing a cloud of doubt hanging over a collection that accounts for about 10 percent of the upscale jeweler's global sales.
Peretti, who has been designing high-end jewelry exclusively for Tiffany since 1974, in May was considering ending her agreement with Tiffany and tried to sell the jeweler her intellectual property, but the parties could not agree on a price.
According to terms of their new deal, reached last week and disclosed in a regulatory filing on Wednesday, Tiffany will make a one-time $47 million payment to Peretti, in addition to royalties for Tiffany's use of her intellectual property rights.
Tiffany is required to devote space in its stores and part of its advertising budget to Peretti's jewelry.
Elsa Peretti's collection for Tiffany includes items that range in price from a $60 bookmark in ruthenium over copper to a $22,000 heart-shaped pendant with pave diamonds in platinum.
Tiffany is set to report its holiday sales on Jan. 10.
Shares were up 1.2 percent to $58.03 in premarket trading. (Reporting by Phil Wahba; Editing by Gerald E. McCormick)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video