Tiffany & Co. Announces Chief Executive Officer Transition
February 05 2017 - 4:15PM
Business Wire
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
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 as Chairman.
“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.
Forward-Looking Statements:
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.
TIF-G
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version on businesswire.com: http://www.businesswire.com/news/home/20170205005032/en/
Tiffany & Co.Mark L. Aaron,
212-230-5301mark.aaron@tiffany.com
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