While the British luxury House underperformed in the first quarter 2024-25, ended June 29, it has just announced the immediate replacement of its current CEO, Jonathan Akeroyd, by Joshua Schulman, an ex-executive of prestigious players such as Coach, Michael Kors, Jimmy Choo and Bergdorf Goodman.
Burberry’s raincoats are taking on water… But the famous British fashion house has already taken out its umbrella!
Burberry has just simultaneously announced a sharp decline in its first quarter 2024-25 and a change of CEO…
First-quarter sales fell by 22% in reported terms and 20% in actual terms, to £458 million ($595 million).
And the trend recorded at the start of the 2024-25 financial year, which ended on June 29, is no mere bump in the road.
Suspension of dividend payments
“The weakness we highlighted at the start of fiscal 2025 has worsened, and if the current trend persists into the second quarter, we expect to report an operating loss for the first half. In view of the current situation, we have decided to suspend dividend payments for fiscal 2025,” said Burberry Chairman Gerry Murphy.
The company also expects full-year profits to be lower than forecast.
A situation that the House of Burberry does not intend to let deteriorate without reacting. It has just announced the replacement, with immediate effect, of its CEO, “by mutual agreement with the Board of Directors”. Jonathan Akeroyd will hand over the reins to Joshua Schulman on July 17.
A former Versace executive, Jonathan Akeyrod joined Burberry in April 2022.
Joshua Schulman, a luxury pro
For his part, 52-year-old American Joshua Schulman will bring to his new company a wealth of experience in the luxury goods, fashion and retail sectors. Based at the company’s London headquarters, he will head up the Executive Committee and report to Gerry Murphy and the Board of Directors.
Prior to joining Burberry, Joshua Shulman had the opportunity to evolve and lead major Houses, mainly Anglo-Saxon, but not only. From 2021 to 2022, he was CEO of the American fashion brand Michael Kors (Capri Holdings group), after having been President of a competitor and compatriot, Coach (Tapestry group), from 2017 to 2020.
Prior to that, still on the other side of the Atlantic, he headed Bergdorf Goodman (part of the Neiman Marcus group) for five years.
From 2007 to 2012, he was CEO of Jimmy Choo in London.
Global Luxury
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Read also > BURBERRY ANNOUNCES A SHARP FALL IN PROFITS IN 2023-2024
Featured Photo: © Burberry
