Burberry has announced a leadership change as the luxury fashion house faces a significant financial downturn.
- Joshua Schulman takes over as CEO following Jonathan Akeroyd’s immediate departure.
- The company reports a 22% revenue decline in its first quarter, impacting global sales.
- Burberry suspends dividend payments to counter financial strain and focus on core offerings.
- Optimism remains as Schulman’s experience is expected to help navigate the brand’s challenges.
In a strategic leadership shift, Burberry, the renowned British luxury fashion house, has appointed Joshua Schulman as the new CEO, succeeding Jonathan Akeroyd who steps down with immediate effect. Schulman joins Burberry amidst a challenging period, as the company reports a notable downturn in its financial performance.
The announcement coincides with Burberry’s disclosure of a 22% drop in revenue, amounting to £458 million for the 13 weeks ending June 29. This decline reflects a more challenging luxury market than anticipated, affecting sales across key regions including Asia-Pacific, the Americas, and EMEA, with declines of 23%, 23%, and 16% respectively.
In light of the disappointing financial results, Burberry has taken the decision to suspend dividend payments for the 2024/25 fiscal year. Chairman Gerry Murphy emphasizes the importance of rebalancing Burberry’s offerings to resonate more closely with its core customer base. This includes strategic actions aimed at cost savings and maintaining the brand’s competitive edge.
Schulman, an American executive with a distinguished career in luxury fashion, previously led brands such as Michael Kors and Coach. He is recognized for his proficiency in building global brands and driving growth. Schulman’s leadership is anticipated to strengthen Burberry’s position and support long-term growth, leveraging his deep understanding of both heritage and innovation.
Commenting on his new role, Schulman expressed his enthusiasm for steering Burberry through its next chapter. He acknowledged Burberry’s quintessential British identity and the opportunity to collaborate with creative director Daniel Lee and the wider team to propel the brand forward.
Burberry’s future now hinges on Schulman’s leadership and strategic direction to revitalize its growth trajectory.
