Luxury jeweler Tiffany & Co. has struck a deal to continue selling the designs of famed Italian jewelry designer Elsa Peretti, which make up about 10% of its total sales.
Under the agreement, New York-based Tiffany retains exclusive rights to Peretti's designs, which include best-selling pieces such as the teardrop necklace and thumbprint vase.
Peretti, who has also created items for high-end designers such as Halston, will get royalties and also a $47-million payment, the company said in a Wednesday regulatory filing. The licensing agreement is for 20 years.
The new deal should be a relief for Tiffany, which has failed to meet analyst expectations on its profit for four straight quarters. Last year, the company said ending its agreement with Peretti might "adversely" affect earnings after the jewelry designer said she was looking into ending her deal with the chain.
Share of Tiffany went up $1.70, or 2.96%, to $59.04 in midday trading Wednesday.
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