Recently, the board of directors at Tiffany & Co. (TIF) appointed Frederic Cumenal as the company’s president and nominated him to an additional seat created in the board. Now, the company has 10 directors altogether in its board.
Cumenal had joined Tiffany as the Executive Vice-President in 2011. Prior to this, he served as President and Chief Executive Officer (CEO) of Moet & Chandon, S.A. of the LVMH Group.
As President, Cumenal will continue to shoulder all his regional responsibilities and will supervise the Design, Merchandising and Marketing operations as well. Cumenal will report directly to CEO Michael J. Kowalski.
Though Cumenal’s association with Tiffany has been brief, the company expects his vast experience as well as expertise to boost the company’s future prospects.
Earlier this month, Tiffany appointed noted jewelry designer Francesca Amfitheatrof as Design Director.
Last month, Tiffany posted second-quarter fiscal 2013 earnings. The results were better-than-expected due to rise in demand in the Asia Pacific region, especially in Greater China. The quarterly earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 74 cents, and rose 15.3% from 72 cents in the prior-year quarter driven by higher sales and improved operating margin. Consequently, management provided an upbeat guidance.
Tiffany now projects fiscal 2013 earnings between $3.50 and $3.60 per share, up from its previous forecast of $3.43 to $3.53. The current Zacks Consensus Estimate for fiscal 2013 is $3.61 per share.
Tiffany now expects total net sales growth in mid single digits for fiscal 2013. In constant currencies, total net sales are projected to increase in the high single-digit range. Operating earnings are expected to grow at a rate higher than that of sales.
Tiffany currently has a Zacks Rank #2 (Buy). Other retail stocks that look promising and are expected to continue with their upbeat performance include Citi Trends, Inc. (CTRN), Christopher & Banks Corp. (CBK) and Kirkland's Inc. (KIRK). All these carry a Zacks Rank #1 (Strong Buy).
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