Frederic Cumenal Steps Down as CEO
Chairman Michael Kowalski Will Serve as Interim CEO; Board Will Work
with Executive Search Firm to Recruit Successor
Reaffirms FY 2016 Earnings Guidance
NEW YORK--(BUSINESS WIRE)--
Tiffany & Co. (NYSE:TIF) today announced that Frederic Cumenal has
stepped down as Chief Executive Officer, effective immediately. The
Board of Directors has commenced a search to recruit a successor in
which it will be assisted by a leading executive search firm. During
this process, Michael J. Kowalski, Chairman of the Board of Directors
and previous CEO of Tiffany, will serve as Interim CEO while continuing
"On behalf of the entire Board of Directors, I would like to thank
Frederic Cumenal for his contributions to Tiffany," said Mr. Kowalski.
"At a time of continuing challenges in the global luxury market,
Frederic has enhanced the management team and taken important steps to
position Tiffany for success in the long term. We wish him the best in
his future endeavors."
Mr. Kowalski continued, "The Board is committed to our current core
business strategies, but has been disappointed by recent financial
results. The Board believes that accelerating execution of those
strategies is necessary to compete more effectively in today's global
luxury market and improve performance. As such, we remain focused on
enhancing the customer experience, increasing the rate of new product
introductions and innovation, maximizing marketing effectiveness,
optimizing the store network, and improving our business operations and
processes, all while efficiently managing our capital and costs. We
believe these initiatives and the pace of their execution are key to
driving shareholder value. Tiffany is an iconic brand with a family of
talented and committed employees to match, and I look forward to
supporting both during the transition."
Mr. Cumenal said, "I am proud of what we have accomplished at Tiffany
and would like to thank the management team and our many talented
employees around the world with whom I have had the pleasure to work. I
have great confidence in Tiffany's brand, strategic direction and
people, and I believe the Company will have many exciting opportunities
in the future."
Reaffirms Annual Guidance
The Company also affirmed, based on its plans and assumptions detailed
in the January 17, 2017 holiday period sales news release, its fiscal
year 2016 guidance described in that press release. The Company expects
to report its fourth quarter and full 2016 fiscal year results, and also
to provide its expectations for the 2017 fiscal year, on March 17 before
the market opens.
Tiffany is the internationally renowned jeweler founded in New York in
1837. Through its subsidiaries, Tiffany & Co. manufactures products and
operates TIFFANY & CO. retail stores worldwide, and also engages in
direct selling through Internet, catalog and business gift operations.
For additional information, please visit www.tiffany.com
or call our shareholder information line at 800-TIF-0110.
Statements contained in this document that are not statements of
historical fact, including those that refer to the Company's search for
a successor CEO, the Company's strategy and initiatives and the pace of
execution thereon, the Company's objectives to compete in the global
luxury market and to improve financial performance, and the Company's
fiscal year 2016 guidance, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The potential risks and uncertainties that could cause the Company's
actual results, performance or achievements to differ from the predicted
results, performance or achievements include, among others, global
macroeconomic and geopolitical developments; changes in interest and
foreign currency rates; changes in taxation policies and regulations;
shifting tourism trends; regional instability, violence (including
terrorist activities), political activities or events, and weather
conditions that may affect local and tourist consumer spending; changes
in consumer confidence, preferences and shopping patterns, as well as
our ability to accurately predict and timely respond to such changes;
shifts in the Company's product and geographic sales mix; variations in
the cost and availability of diamonds, gemstones and precious metals;
changes in our competitive landscape; our ability to successfully
control costs and execute on, and achieve the expected benefits from,
our operational and strategic initiatives, and any difficulties or
delays we encounter in identifying a successor CEO.
Additional information about potential risks and uncertainties that
could affect the Company's business and financial results is included in
the Company's Annual Report on Form 10-K for the fiscal year ended
January 31, 2016, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K, and the Company's Press Release dated January 17, 2017. 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170205005032/en/
Tiffany & Co.
Mark L. Aaron, 212-230-5301
Source: Tiffany & Co.
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