hnnhcronin Earlier this year, Tiffany & Co.’s CEO, Frederic Cumenal, announced his intention to leave the company after the company experienced worse than expected holiday sales. The company partially attributed this decline to the post-election commotion in front of the 5th avenue Trump tower, located very near to the company’s flagship store. Although the protests in the area may have made the flagship store less accessible, the sales decline is mainly a result of the strength of the US dollar in comparison to foreign countries and Tiffany’s general difficulty staying relevant in the modern retail market. In fact, Tiffany has reported sales decline in seven of the eight most recent quarters.
Following Cumenal’s decision to leave, Tiffany’s board began a six month search for a new chief executive and recently announced that industry veteran Alessandro Bogliolo will assume the role. Bogliolo is no stranger to the luxury retail market; he was previously the CEO of Italian clothing, footwear, and accessories company Diesel and worked for the renowned Italian luxury jewelry house Bulgari. Tiffany’s board hopes Bogliolo will be able to reassert Tiffany’s brand and reputation in the luxury market. Bogliolo’s successful experience with a very high end jewelry company such as Bulgari should prove beneficial to the Tiffany brand image. Additionally, Bogliolo improved customer service and satisfaction at all of the Diesel locations when he served as CEO.
Tiffany is optimistic about Bogliolo’s plans to revitalize Tiffany’s foray into e-commerce and to hold all employees more accountable for bottom line results. Bogliolo has a desire to help Tiffany once again become an international competitor with the likes of Harry Winston and Bulgari. Tiffany & Co. has struggled to sell its new product, but Bogliolo is reported to have a real vision for future jewelry products that stay in tune with Tiffany’s long-standing heritage. The public seemed optimistic to the news; following the announcement, shares of Tiffany rose almost 2%.
A new CEO is not the only major change to the Tiffany board. After facing pressure from activist investor Jana Partners, Tiffany has appointed three new directors, including former Bulgari CEO Francesco Trapani, co-CEO of Tory Burch, Roger Farah, and former CEO of Jarden Corporation, James Lillie. Roger Farah served as the Chief Operating officer at Ralph Lauren for 13 years and has been credited with saving the brand from retail extinction. Farah’s experience with revitalizing brands as well as Trapani’s knowledge of the luxury jewelry market should especially assist Tiffany & Co. in its goals of generating more profitable returns to its shareholders and improving its brand image.
Sources:
Aaron, Marc L. “ TIFFANY & CO. NAMES ALESSANDRO BOGLIOLO CHIEF EXECUTIVE
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Magazine, 13 July 2017, www.forbes.com/sites/anthonydemarco/2017/07/13/tiffany-names-alessandro-bogliolo-as-its-new-ceo/#52fb7d92174d.
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Dow Jones & Company, 13 July 2017, www.wsj.com/articles/tiffany-taps-alessandro-bogliolo-to-be-its-new-ceo-1499947164.
Tiffany & Co. – Financial Information, investor.tiffany.com/financials.cfm.
Wahba, Phil. “Why Tiffany Just Added a Retail Rockstar to Its Board.” Tiffany Adds 3 Directors Amid
Activist Investor Pressure | Fortune.com, Fortune, 21 Feb. 2017, fortune.com/2017/02/21/tiffany-jana/.
Wong, Stephanie Hoi-Nga. “Tiffany Abruptly Drops CEO in Luxury Industry’s Latest Shake-Up.”
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