Initially, Peretti wanted Tiffany to purchase her intellectual property rights, but the two parties were unable to come to an agreement, the spokesman said. One issue Tiffany had under the original contract was that both sides could give just six months notice to withdraw from the partnership — a provision that, considering Peretti’s sizable sales contribution, was concerning.
According to the deal dated Dec. 27, Peretti retains her intellectual property, but Tiffany will pay the designer $47.3 million to ensure that her designs remain at the retailer for 20 years. The payment will be amortized over the duration of the license, amounting to a $2.4 million expense on Tiffany’s income statement over 20 years.
Tiffany will also pay Peretti a basic royalty of $450,000 “per fiscal year during the term,” which would earn Peretti another $9 million, plus a royalty of 5 percent of net sales during the term. There is also a quality control services fee equal to 2 percent of net Peretti sales, for a total of 7 percent of net sales.
Additionally, Tiffany will help grow “Peretti objects,” or home goods and other accessories. The designer requested that Tiffany beef up its inventory of this category, and thus devote a portion of its advertising budget to its promotion. In order to sell more Peretti home wares and accessories, Tiffany will reduce the retail prices of those goods in the U.S. by 20 percent. The spokesman said objects account for a minute percentage of Peretti’s total sales, and it would be negligible to the retailer’s financials.
With the new contract in place, Peretti may not sell, lease or otherwise dispose of her intellectual property unless the buyer expressly agrees with Tiffany to be bound by the provisions of the deal. The agreement also provides that any heir, estate, trustee or permitted successor or assignee of Peretti will be bound by the terms of the Tiffany deal.
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)
Breaking News: @hedislimane joins @celine as its new artistic, creative and image director. One of fashion’s preeminent image-makers and trendsetters, Slimane is to join the LVMH brand on Feb. 1 and unveil his first fashion proposition for men and women next September during Paris Fashion Week. It marks a major homecoming for Slimane, who cemented his reputation – and influenced men’s tailoring for more than a decade – as the designer of Dior Homme between 2000 and 2007. He went on to reinvent and ignite the house of Yves Saint Laurent, which he rechristened Saint Laurent, between 2012 and 2016 – all the while maintaining a close relationship with the Arnault family, which controls LVMH and Dior. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
“Personally I believe the Eighties have been the richest and more vivacious period for international fashion,” Giorgio Armani said when asked what his favorite decade of fashion is. It was a moment of disruption and experimentation and only thinking back to the first years of that decade is always an emotion for me, for what they have meant to me and my work.” The influence is clear in @giorgioarmani spring 2018 collection, pictured here, which was full of bright colors and unexpected prints. Read more about which decades designers loved most on WWD.com #wwdfashion #wwddecades (📷: @aitorrosasphoto)
For Lady Gaga’s only Italian show on her “Joanne World Tour,” the singer wore a range of @versace_official outfits. The standout piece: this custom-made bodysuit inspired by the brand’s spring 2018 collection. #wwdfashion (RG: @ladygaga)
@_camillaruth_ is expanding on the wellness-craze concept with @westbourne – a new NYC restaurant that’s both a healthy-minded café as well as a business that gives back to the community. Marcus works with the Robin Hood foundation to give back to The Door, a non-profit providing youth development services, and also hires employees through The Door. Read our full interview with Marcus on giving back through food on WWD.com. #wwdeye (📷: @lexieblacklock)