Tiffany & Co. (NYSE: TIF) said its Chief Executive Officer Frederic Cumenal will step down as the company cited disappointing financial results on Sunday. The jewelry company said Cumenal’s departure is effective immediately. Michael Kowalski, chairman of the board and former CEO of Tiffany, will serve as interim CEO while the company searches for new CEO.
Cumenal joined Tiffany in March 2011 as executive vice president. He replaced Kowalski as CEO in April 2015 and run the company since then. The New York-based retailer suffered from some headwinds in the recent years, including a decline in tourism spending, weaker holiday sales, a stronger U.S. dollar and lower traffic at its flagship store next to Trump Tower in New York.
"The board is committed to our current core business strategies, but has been disappointed by recent financial results," Kowalski said in a formal statement. Tiffany shares dropped as much as 2.91 percent to $78.12 in the early trading in New York.
"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. "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."