Retail
Tiffany Faces Identity Crisis That Lady Gaga Alone Won’t Fix
- Analysts see need for more iconic products, better marketing
- CEO Frederic Cumenal departs abruptly, sending shares lower
Tiffany & Co. tried to put a new face forward last weekend when the 179-year-old jeweler aired a Super Bowl ad featuring Lady Gaga. But the challenges ahead -- including weak sales, aging customers and its search for a new leader -- are overshadowing the makeover.
When the company abruptly replaced Chief Executive Officer Frederic Cumenal just before the big game on Sunday, it renewed investor concerns about its turnaround plan. The key question: As Tiffany’s core baby boomer customers curb their spending, can millennials take their place? While Lady Gaga’s endorsement may help, the retailer has yet to convince shareholders that it can appeal to the next generation.