Tiffany CEO to Exit Amid Sales Slump at Luxury Chain
Feb 07 2017
The board is now searching for a permanent replacement.
Tiffany announced Sunday that it had engaged an executive search firm to find a new CEO.
The famed luxury retailer - which has five standalone stores in London, two at Heathrow airport and concessions with Selfridges and Harrods - confirmed yesterday that Frederic Cumenal will be replaced with chairman Michael Kowalski on an interim basis until a permanent replacement is found. "We wish him the best in his future endeavors".
"The board believes that accelerating execution of those strategies is necessary to compete more effectively in today's global luxury market and improve performance", added Kowalski.
Mr. Kowalski continued, "The Board is committed to our current core business strategies, but has been disappointed by recent financial results".
Cumenal also thanked the staff and team of Tiffany said that he places a lot of faith and confidence in the company, its people and the strategic directions it follows.
Tiffany affirmed its fiscal year 2016 guidance.
Tiffany shares dropped as much as 2.91 percent to $78.12 in the early trading in NY. Tiffany also forecast cash from operating activities of $575 million and free cash flow of $125 million.
Still, Cumenal's departure caught many by surprise, given his short time in the post, and the fact that many factors depressing Tiffany's sales were, arguably, beyond his control, including the limp economy overseas and its flagship's unfortunate proximity to the Trump Tower at a time when it was besieged by media, security, and protestors. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law or regulation.
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