Tiffany CEO Frederic Cumenal stepped down Sunday, amid a famed oppulance valuables chain’s continued struggles with unsatisfactory financial results, including lower than expected holiday sales.
The company’s announcement of a government shakeup pronounced house Chairman Michael Kowalski, whom Cumenal succeeded in 2014, will lapse to a tip executive post on an halt basement while Tiffany (TIF) searches for a permanent replacement. Kowalski will also keep the chairman responsibilities, a association said.
“The house is committed to a stream core business strategies, though has been unhappy by new financial results,” Kowalski pronounced in a grave matter in that he also thanked Cumenal for enhancing a company’s government group and positioning Tiffany for a prolonged term.
“The house believes that accelerating execution of those strategies is required to contest some-more effectively in today’s tellurian oppulance marketplace and urge performance,” combined Kowalski. “As such, we sojourn focused on enhancing a customer experience, augmenting a rate of new product introductions and innovation, maximizing offered effectiveness, optimizing a store network, and improving a business operations and processes.”
Tiffany also validated a fiscal year 2016 guidance released in January, when a association pronounced it expects gain per diluted share to decrease by no some-more than a mid-single-digit commission on a generally supposed accounting beliefs basis.
Cumenal, in his possess statement, thanked a company’s government group and employees and voiced “great certainty in Tiffany’s brand, vital direction, and people.” He assimilated Tiffany in 2011 after holding a array of comparison care posts during LVMH Group, culminating as boss and CEO of Moët Chandon.
Founded in New York in 1837, Tiffany manufactures excellent valuables and gifts and operates sell stores worldwide, along with approach offered online. However, a company, famous for a particular light blue present boxes, has faced a formidable market in new years.
Last month, a association announced that 2016 holiday sales were reduce than anticipated, due in partial to “post-election trade disruptions” nearby Tiffany’s New York City headquarters — that abuts Trump Tower, President Trump’s Manhattan home and bureau headquarters.
Global net sales rose 1% from a same duration of 2015, and allied sales slipped 1% when noticed on a constant-exchange-rate basis, Tiffany said. Although a association pronounced holiday deteriorate sales grew 7% in Asia-Pacific and 16% in Japan, a increases were equivalent by stability declines in a Americas and Europe, where some unfamiliar tourists and visitors were deterred by a clever U.S. dollar.
Despite a financial challenges, Tiffany shares overwhelmed a new high of $85.06 on Dec. 8, resilient from a new low of $57.48 on Jun 16. The batch sealed scarcely 3% aloft during $80.47 in Friday trading.
Tiffany also announced in Jan that Reed Krakoff, a company’s artistic co-operator during 2016, would turn a arch artistic officer as of Feb. 1. The warn proclamation made Krakoff a pattern executive for Tiffany code jewelry, as good as gave him a company’s lead purpose in artistic and pattern prophesy regarding stores, e-commerce, marketing, and advertising.
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