High-end jeweler Tiffany & Co. (TIF, Financial) appointed Alessandro Bogliolo as its new CEO on July 13, replacing the ousted Frederic Cumenal.
Bogliolo, who has been the CEO of Italian apparel and accessories company Diesel SpA since 2013, will join the company Oct. 2. His work experience includes a stint as chief operating officer, North America at Sephora USA Inc. from 2012 to 2013, and 16 years with Bulgari SpA (BULIF, Financial), where he rose to the ranks of chief operating officer and executive vice president of jewelry, watches and accessories.
His predecessor, Cumenal, stepped down in February after the New York-based company posted declining sales and profits for the second consecutive year. Chairman Michael Kowalski stepped in as interim CEO until a replacement was found.
The board hopes Bogliolo, who has a history of successfully revitalizing brands and enhancing customer experiences, will be able to return the company to profitability. The board is being pressured by Jana Partners (Trades, Portfolio), its third-largest shareholder, to rejuvenate Tiffany’s image. The activist hedge fund established a nearly 5% stake in the company in February and also entered a deal to add three members to its board.
Kowalski said he believes the company has selected an “accomplished leader” to guide it back to sustainable growth.
“[Bogliolo] has a well-deserved reputation for creativity and execution, having previously led a number of international brands to success and improved performance,” Kowalski said. “I also believe that his vision and team-oriented approach make him an ideal fit with Tiffany’s long-standing values.”
Independent Director Rose Marie Bravo also voiced her confidence in Bogliolo’s experience and passion for the brand.
“He is a proven executive with the skills necessary to accelerate revenue growth and increase value for all shareholders during this next chapter for Tiffany,” Bravo said.
For his part, Bogliolo said he is honored by the opportunity to lead the company.
“Tiffany, with its legendary history, has always represented luxury, style and an extraordinary standard of quality and excellence, and I look forward to working with the board and the rest of the Tiffany team to build on this foundation,” Bogliolo said.
Recovering from a low of $60 in June, Tiffany’s shares swelled nearly 2% in morning trading to $94.27 following the announcement.
Disclosure: I do not own any stocks mentioned in the article.
