Tiffany Drops CEO
Tiffany & Co. abruptly replaced Chief Executive Officer Frederic Cumenal after disappointing financial results, just hours before the jewelry chain introduced a new campaign with the first Super Bowl ad in its history. Cumenal, who had run the company since April 2015, is being succeeded on an interim basis by chairman and former CEO Michael Kowalski. The shakeup follows the departure of the jeweler’s top designer three weeks ago and weak holiday sales that sent the company's stock tumbling.
Total Retail's Take: It's pretty clear that Cumenal was fired because of Tiffany's recent sales slump. Under Cumenal’s watch, Tiffany was rocked by a slump in tourism spending. What's more, sales declines in Europe and the Americas marred its holiday season. Another headache: Stepped-up security at its flagship store next to Trump Tower in New York City hurt foot traffic. It will be interesting to se how the interim CEO will turn things around for the luxury retailer, as well as who will step into the CEO role on a more permanent basis.