On Sunday, the jewelry chain Tiffany & Co. announced that its CEO, Frederic Cumenal, will be stepping down. The decision was reported after the company’s disappointing financial reports released in January.
Tiffany & Company is a luxury jewelry and specialty retailer. It was founded in 1837 and is based in New York, New York.
Tiffany’s, as it is colloquially known, sells various goods. But it is most renowned for its diamond jewelry and other luxury goods. The retailer has an international outreach. It operates through its own stores. And also through corporate merchandising or direct-mail.
Still, the famed luxury chain has been experiencing some financial struggles. And this could be one of the reason behind its latest management shakeup. Over the weekend, the company released an announcement.
This revealed the fact that Frederic Cumenal will be stepping down from his current position. Cumenal was Tiffany’s Chief Executive Officer. Frederic Cumenal had been filling the position since 2014. At the time, he succeeded Michael Kowalski. This latter became the company’s board Chairman.
Presently, Kowalski will act as interim CEO. He will fill the position as Tiffany’s will start looking for a permanent replacement for the role. Kowalski will also retain his Chairman role and responsibilities.
Frederic Cumenal also issued a statement. He went to thank the Tiffany & Co. management team. And also the company employees. Cumenal expressed his confidence in the retailer’s brand. And also in the Tiffany strategic direction as well as its people.
Frederic Cumenal joined the luxury goods retailer back in 2011. Before Tiffany’s, he held various senior leaderships posts as part of the LVMH Group. Frederic Cumenal was also the Moet & Chandon CEO and President.
Frederic Cumenal will be stepping down from the CEO position as Tiffany’s is experiencing some financial struggles. In January, the retailer reported lower than expected holiday quarter sales.
Whilst its domestic sales slipped, the international ones marked a rise. Following the reports, the company also issued its 2016 fiscal year guidance. This was reaffirmed following the management announcement. And it reports as follows.
Tiffany’s is expecting an earnings per diluted share decline. But this is estimated to be no higher than a mid-single-digit percentage. And it is accepted on a general accounting principles basis.
Tiffany’s went to thank Frederic Cumenal for his work within the company. His efforts to enhance the management team were mentioned. And also the fact that he helped ensure Tiffany’s position for the long term.
These facts were pointed out by Michael Kowalski in an official statement. He also drew attention to the following. Tiffany’s board is committed to the company’s core business strategies. Even if it has been somewhat disappointed by the latest financial results.
The retailer will reportedly focus on its commitment to enhancing the customer experience. It will also be looking to optimize the store network. And also to maximize the marketing effectiveness. Tiffany’s will also be improving its business processes and operations.
Starting this month, Tiffany’s will also have a new chief artistic officer. Reed Krakoff has taken over the position as of February 01. Throughout 2016, he was a creative collaborator.
Krakoff will also have a lead role in the company’s design and artistic vision regarding various segments. These will include its stores and e-commerce divisions. And also the advertising and marketing areas.
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