Tiffany & Co. Chief Executive Officer Frederic Cumenal will no longer work with the company. In an unprecedented move, the jewelry chain decided that it no longer needs the services of Cumenal in leading the company.
The decision of Tiffany to kick out its CEO may not surprise industry observers and investors. The jewelry chain has been failing to meet its sales target even during the recent holiday season when sales should have skyrocketed.
Tiffany has been trying to reduce cost in order to bump up its bottom line, the Chicago Tribune reported. However, several factors had caused sales to continue its downward trend under Cumenal's leadership.
With Cumenal at the helm, the jewelry chain failed to shake off the headwinds of the strong U.S. dollar as well as the negative effect of the tougher security at its flagship store next to Trump Tower following the election of Donald Trump as United States president.
The jewelry chain appointed its chairman and former CEO Michael Kowalski to serve as its CEO on an interim basis while it conducts a search for a new chief. Kowalski said Tiffany needs to execute its operational and financial goals faster, which may suggest that Cumenal failed to hasten progress toward the jewelry chain's targets for the short term as well as for the long term.
Forbes reported that investors have not been very happy with the performance of Tiffany. Replacing Cumenal just right after the jewelry chain launched a Super Bowl campaign also hit the company's stock.
Any sudden management changes within the company are sure to make investors nervous. The stocks of Ralph Lauren, another retail company, also suffered when the company announced that Stefan Larsson is leaving.
Cumenal has been with Tiffany for about two years before he was kicked out and replaced. The time period might not have been enough to fix the problems caused by multiple headwinds.
Jobs & Hire recently reported that Hilton, one of the luxury hotel brands, decided to change the rewards system for Hilton Honors members.