Tiffany CEO out

On the heels of disappointing financial results, Tiffany & Co. said that Frederic Cumenal has stepped down as CEO, effective immediately.



Cumenal, who had run the company since April 2015, is being succeeded on an interim basis by chairman and former CEO Michael Kowalski, while the company searches for a permanent replacement.



The luxury jeweler has been challenged with declining sales amid a strong U.S. dollar, a decline in tourism spending and a slowdown in business at its Fifth Avenue Manhattan flagship, which is located next to Trump Tower. Tiffany has fought back by cutting costs, launching new products and increasing its marketing efforts, including the debut of a new television commercial starring Lady Gaga during the 2017 Super Bowl. The commercial is for the retailer’s new, slightly edgy HardWear collection. (Tiffany has designed and produced the Super Bowl winners’ trophy since 1967.)



“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,” Kowalski said. “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 im-prove performance.”



Tiffany affirmed its fiscal year 2016 guidance. Earnings are expected to decline by no more than a mid-single-digit percentage in the current fiscal year, and global sales will decline by a low-single-digit percentage.