Burberry has made a significant leadership change due to financial challenges.
- Joshua Schulman has been appointed as the new CEO, taking over from Jonathan Akeroyd.
- The luxury fashion brand reported a 22% drop in revenue in its first-quarter results.
- Store sales witnessed substantial declines across Asia-Pacific, Americas, and EMEA regions.
- Burberry has decided to suspend dividend payments for the 2024/25 financial year.
Burberry has announced a key leadership change in response to recent financial struggles. Joshua Schulman will take over as CEO, succeeding Jonathan Akeroyd, who resigned immediately. Schulman, a 52-year-old American national, brings extensive experience in the luxury fashion industry, having previously held CEO roles at Michael Kors and Coach, as well as significant positions at Jimmy Choo and Yves Saint Laurent.
The British luxury brand reported a sharp 22% decline in revenue for its first quarter, ending 29 June 2024. The company attributed this to challenging market conditions affecting the luxury sector more severely than anticipated. Consequently, store sales plummeted by 23% in both Asia-Pacific and the Americas, and by 16% in EMEA.
In response, Burberry has suspended its dividend payments for the financial year 2024/25. The company’s chair, Gerry Murphy, emphasised their commitment to rebalancing the brand’s offerings to better align with core customers while introducing fresh content. These strategic actions, aimed at cost savings and enhanced competitiveness, are expected to show positive results in the second half of the year and support long-term growth.
Joshua Schulman will officially join Burberry on 17 July 2024, operating from the company’s headquarters in London. He will lead the executive team and report to the board of directors. Murphy expressed confidence in Schulman’s leadership, citing his proven ability to build global luxury brands and drive profitable growth. Schulman himself praised Burberry’s unique blend of heritage and innovation, looking forward to working with the creative director and team to drive growth and enrich the brand’s legacy.
Burberry’s strategic leadership transition and financial adjustments aim to navigate current challenges and position the brand for future growth.
