Tiffany ordered to pay Swatch $449 million in damages, cuts outlook

ZURICH/NEW YORK (Reuters) – Tiffany & Co (TIF) on Sunday said a Dutch arbitration court ruled that it must pay Swatch Group (UHR.VX) 402 million Swiss francs ($448.79 million) in damages over their failed joint venture to produce and market watches, and the New York-based jeweler slashed its profit outlook for the year. Swatch, the world’s largest watchmaker, and Tiffany, a New York-based jeweler, had struck an agreement in 2007 to develop watches under the Tiffany brand together. The arrangement, intended to last for 20 years and give Tiffany a much bigger place in the luxury watch market, never turned into big business for either company, and the deal ended in acrimony in 2011. Michael Kowalski, the chief executive of the luxury retailer, said in a statement that he was “shocked and extremely disappointed” with the court ruling, issued on Friday, and that the company was reviewing its options.

    

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