The sudden resignation of Tiffany & Co.'s chief financial officer isn't a sign that the luxury jewelry company is in trouble, several Wall Street analysts said Monday.
Tiffany said in a regulatory filing Friday that CFO Patrick McGuiness is resigning on Nov. 27, just before the busy holiday shopping season kicks off.
Its Chief Operating Officer James Fernandez will step in as temporary CFO.
The company will pay McGuiness $899,000 in severance and a portion of his bonus. Tiffany did not say why McGuiness is leaving.
"We do not think this announcement serves as any indication whatsoever as to the state of business or the brand," said Stifel Nicolaus analyst David Schick in a note to clients on Friday.
Citi analyst Oliver Chen said that McGuiness' resignation surprised him, but he didn't think it was due to accounting concerns or any new pressures on Tiffany. In a note Monday, he said that he expects it will take 3 to 6 months to find a permanent CFO.
Tiffany did not immediately respond to an emailed request for comment.
Shares of the company added 1 cent to $82.75 in afternoon trading Monday.
- Investment & Company Information