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.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion