Burberry announces immediate resignation of chief executive
Date
7/16/2024 3:11:32 AM
(MENAFN) On Monday, Burberry, the renowned British fashion company, announced the immediate resignation of its chief executive, Jonathan Akeroyd, citing disappointing financial results as the primary reason for this sudden change. The luxury goods sector has been facing significant challenges due to weak demand from China, which has adversely affected Burberry's performance. Akeroyd, a 57-year-old Briton, is stepping down after a tenure of less than two and a half years at the company's helm. His successor will be Joshua Schulman, an American executive who previously served as the CEO of well-known American fashion companies Michael Kors and Coach.
Burberry's Chairman, Gerry Murphy, expressed confidence in Schulman's abilities in a statement, describing him as "a proven leader with a proven track record of building global luxury brands and delivering profitable growth." Schulman, who is 52 years old, officially joined Burberry on Wednesday. He conveyed his enthusiasm for his new role, stating that he looks forward to collaborating with creative director Daniel Lee and the talented teams at Burberry to drive global growth, delight customers, and write the next chapter of the company's storied history.
Murphy also addressed Burberry's recent financial performance in a separate statement, labeling it as "disappointing." The company's revenues saw a significant decline, dropping by 22 percent to £458 million (USD595 million) in the first quarter of the fiscal year, covering the period from the start of April to the end of June. This sharp decrease in revenue has prompted the 168-year-old brand, famous for its iconic trench coats and red, camel, and black check designs, to announce plans for cost-cutting measures. Among these measures is the suspension of dividend payments, reflecting the company's urgent need to stabilize its financial footing amid challenging market conditions.
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