Burberry Appoints Joshua Schulman as New CEO Amid Profit Warning and Dividend Cut
In a strategic move to navigate through challenging times in the luxury sector, Burberry has announced the appointment of Joshua Schulman, former Michael Kors boss, as its new chief executive. This decision comes as the British luxury brand faces a significant slowdown in its market, leading to a 21% decline in underlying sales for the 13-week period ending June 29.
As a result of this downturn, Burberry has decided to revert to its traditional offerings to cater to its core customers, signaling a shift away from recent attempts to move upmarket. The company's board also announced the departure of CEO Jonathan Akeroyd, effective immediately, after just over two years in the role.
Despite being renowned for dressing the English upper classes, Burberry now faces the challenge of falling short of consensus estimates for its full-year operating profit if current trends persist. However, the brand remains optimistic about a turnaround in the second half of the year as it refocuses on its classic camel, red, and black check print.
In conclusion, Burberry's latest announcements reflect the ongoing struggles in the luxury sector and the brand's efforts to adapt to changing consumer preferences. Investors and consumers alike should keep a close eye on how these developments unfold, as they could have a significant impact on Burberry's financial performance and market position in the coming months.