British luxury fashion house Burberry has announced the appointment of Joshua Schulman as its new chief executive officer, replacing Jonathan Akeroyd who has stepped down by mutual agreement with the board. Schulman, 52, brings a wealth of experience from his previous roles at Michael Kors and Coach.
The company issued a warning of an expected operating loss in the first half of the year due to slumping retail sales. This news has also led to a revision of full-year earnings projections and the suspension of shareholder dividend payouts. Burberry shares took a significant hit, dropping more than 11% following the announcement.
Chair Gerry Murphy expressed disappointment in the first-quarter performance, attributing it to challenges in the luxury market. He noted that the anticipated weakness for the year has intensified, potentially leading to an operating loss in the first half if current trends persist.
Akeroyd, who previously led Gianni Versace, took on the role of Burberry's CEO in April 2022. During his tenure, the company witnessed key departures, including the chief financial and operating officer, as well as the creative director. Riccardo Tisci was replaced by Daniel Lee in 2022.
Murphy highlighted Schulman's track record in building global luxury brands and driving profitable growth. Schulman's previous successes at Coach, Bergdorf Goodman, and Jimmy Choo position him well to lead Burberry towards realizing its full potential.
