Looking to offset declining sales and profits, luxury jeweler Tiffany & Co.has offered “voluntary retirement incentives” to about 800 U.S. employees.
The number represents about 9.1 percent of Tiffany’s global workforce of 8,800 and 13.3 percent of the 6,000 it employs in the U.S.
The New York-based retailer said in a Securities and Exchange Commission filing that it expects to record a pretax, nonrecurring charge of $50 million to $65 million in the fourth quarter of fiscal 2008 as a result of the cuts. The final amount of the charge will depend on the number of eligible employees who accept the packages.
“Could there be other adjustments to staffing? Yes, there could be,” Mark Aaron, Tiffany’s vice president of investor relations, told WWD.
Aaron said the company expects to finalize plans to further adjust staffing levels by the end of the fourth quarter. He declined to comment on the number of employees Tiffany expects to accept the retirement offer.
The incentive, which includes “increased age and service credit for pension purposes, severance payments, enhanced retirement health care benefits and accelerated vesting and extended exercise rights for equity grants now outstanding,” will be offered until Jan. 12.
Last week, the retailer trimmed its full-year earnings forecast and reduced 2009 store growth plans after reporting a 56.9 percent drop in third-quarter net income.
Tiffany lowered full-year guidance to $2.30 to $2.50 a share, from $2.82 to $2.92, with sales expected to be flat to down 2 percent. The charges from the retirement incentive were not included in the full-year forecast, the firm said.
Store growth for 2009 will be cut to five stores in the Americas, down from six this year. The retailer said it would open three stores in the U.S., one in Canada and one in Latin America. The jeweler plans to open eight stores across Asia-Pacific and Europe, down from 16 stores this year. The majority of the openings will be in the Asia-Pacific region, the company said.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)