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Tiffany says CEO Frederic Cumenal steps down

07 February 2017

Tiffany aired a Super Bowl ad with halftime performer Lady Gaga during a tumultuous time in its history.

Cumenal had been CEO since April 2015 after joining TIF in 2011 to oversee sales and distribution, and became president and joined the board in 2013; Kowalski joined the company in 1983 and was CEO from 1999 until becoming chairman as Cumenal took the top job.

Tiffany announced Sunday that it had engaged an executive search firm to find a new CEO.

5, the same day Tiffany ran its first-ever Super Bowl commercial (see story), the jeweler shared that Mr. Cumenal will be replaced as CEO.

"Management attributed the lower sales to local customer spending, with a decline in U.S. sales exacerbated by a 14% decline at the company's flagship store on Fifth Avenue in NY, which we attribute at least partly to post-election traffic disruptions", a statement said. He also said that the board of Tiffany is still committed to its core and strong strategies for business, but the results in terms of finances recently have really disappointed them. "The Brand is definitive and iconic, yet continues to push and evolve with the times", Gaga said in a statement.

"The board believes that accelerating execution of those strategies is necessary to compete more effectively in today's global luxury market and improve performance", added Kowalski.

A company representative told Forbes that the timing was "coincidental".

"We remain focused on enhancing the customer experience, increasing the rate of new product introductions and innovation, maximizing marketing effectiveness, optimising the store network, and improving our business operations and processes, all while efficiently managing our capital and costs".

Tiffany shares dropped as much as 2.91 percent to $78.12 in the early trading in NY.

Tiffany says CEO Frederic Cumenal steps down