Tiffany & Co. (NYSE:TIF) shareholders outperformed a declining market in October as the stock rose 13% compared to the S&P 500's 2.8% drop, according to data provided by S&P Global Market Intelligence.
That rally erased a portion of recent investor losses, but shares are still down slightly so far in 2020.
The luxury jewelry giant announced positive earnings news, saying on Oct. 15 that sales were well on the way toward recovering from the COVID-19 pandemic. Revenue fell slightly in August and September, management said, while earnings were up 25%.
But the bigger story for the stock was that Tiffany worked out its disagreements with LVMH Moet Hennessy (OTC:LVMHF), which paves the way for the merger to conclude. The two companies agreed to a new purchase price of $131.50 per share in cash, or just below the prior $135 per share agreement that was reached before the pandemic struck.
The merger still has some hurdles to pass before its expected closing in early 2021. But investors appear confident that it will go through, given that the consumer discretionary stock's price is hovering just below the merger buyout price.