LONDON (AFP) – British fashion label Burberry yesterday announced the immediate departure of chief executive Jonathan Akeroyd as it posted “disappointing” results with the luxury sector pressured by weak Chinese demand.
Akeroyd, 57, departs after less than two and a half years at the helm, while the Briton is being replaced by Joshua Schulman, a former chief executive officer at American fashion brands Michael Kors and Coach.
In a statement, Burberry chair Gerry Murphy described United States national Schulman, 52, as “a proven leader with an outstanding record of building global luxury brands and driving profitable growth”.
Schulman, who officially joins the group tomorrow, said he looked “forward to working alongside (creative director) Daniel Lee and the talented teams to drive global growth, delight our customers, and write the next chapter of the Burberry story”.
In a separate statement, Murphy said the group’s recent “performance is disappointing”.
Revenue slid 22 per cent to GBP458 million (USD595 million) in Burberry’s first quarter, or three months to the end of June.
The 168-year-old label – famous for its trench coats and trademark red, camel and black check design – announced plans to cut costs, which involve suspending dividend payments. Murphy warned that the group risked an operating loss in its first half.
Burberry’s share price slumped 14.5 per cent to GBP7.57 following the announcements, making it by far the largest faller on London’s top-tier FTSE 100 index, which was flat overall in morning trade.
“Burberry grabbed the headlines in company news, bringing forward its first quarter update amid some developments which came as a shock,” noted head of markets at Interactive Investor Richard Hunter. “The level of the group’s appeal has been thwarted by weakening consumer demand, especially in the likes of China.”
Burberry’s share price is down 46 per cent since the start of the year.
Highlighting troubles across the luxury fashion sector, Gucci owner Kering in April issued a profit warning.
