And so it’s here: an in-crisis Burberry changes CEO. The British luxury brand has appointed Joshua Schulman as its new CEO. He will take over, effective immediately, from Jonathan Akeroyd, who is leaving the company with a mutual agreement with the board. Burberry also reported retail sales for its first quarter 2024 (April-June): £458 million, -22% at current exchange rates and -20% at constant exchange rates.
And so it’s here
Burberry changes leadership after a disappointing first quarter. Jonathan Akeroyd makes way for former Michael Kors and Coach CEO, Joshua Schulman, 52. From 2007 to 2012, Schulman led Jimmy Choo in London. Schulman’s appointment confirms rumors that have been circulating for several months about a possible CEO change primarily desired by Burberry chairman Gerry Murphy.
Disappointing results
“The first quarter results are disappointing“, Murphy began. “We have moved quickly with our creative transition in a luxury market that is proving more difficult than expected. The weakness we highlighted at the beginning of FY2025 has worsened, and should the current trend persist in the second quarter (July-September), we expect to record an operating loss in the first six months”. The British fashion house has, in addition, decided to suspend dividend payments for fiscal year 2025 in order to maintain a strong balance sheet and the company’s ability to invest.
Is Daniel Lee also faltering?
Akeroyd had aimed to achieve long-term sales of 5 billion pounds by selling more high-margin leather goods, shoes, and accessories, such as the Rocking Horse bags. Above all, he had sought to emphasize “Britishness” to elevate brand positioning. Will Schulman continue on this path or head in the opposite direction? Will he confirm the 400 layoffs announced in recent days? All legitimate questions, including the following one: with the change of CEO, is Daniel Lee’s creative director position also faltering? Schulman’s first words of extreme (and dutiful) circumstance seem to dismiss that possibility. “I am deeply honored to join Burberry as CEO”, reads the brand’s LinkedIn page. “Burberry is an extraordinary luxury brand, distinctively British, combining tradition and innovation in equal parts. (…) I look forward to working alongside Daniel Lee and our teams”. The goal: to write “the next chapter of Burberry’s story”.
Read also:
