Burberry faces a CEO change as Jonathan Akeroyd steps down amidst financial struggles.
- The company’s revenue dropped by 22% to £458m in the first quarter.
- Share prices plummeted by 16%, reaching a 14-year low.
- Industry reactions suggest the leadership change is unsurprising given recent performances.
- Joshua Schulman, with extensive experience, steps in as the new CEO with immediate effect.
Burberry has announced a strategic leadership transition as Jonathan Akeroyd steps down as CEO, following a significant 22% decline in revenue to £458 million for the 13 weeks ending 29 June. This unexpected departure comes amidst financial turmoil, with share prices dropping by 16% to their lowest point in 14 years.
Experts, such as independent retail analyst Nick Bubb, note that Akeroyd’s exit is unsurprising given the disappointing sales figures and the accompanying disastrous share price slump. Similarly, Jelena Sokolova, a senior equity analyst from Morningstar, regards the shift in leadership as foreseeable, citing Burberry’s underwhelming performance in a challenging market.
The timing of Akeroyd’s resignation, occurring four days before the first-quarter results, is interpreted by industry professionals as a move to demonstrate Burberry’s control over the situation. Katie Haxton from Flint Hyde suggests this was a necessary step to mitigate panic regarding the anticipated negative financial disclosures.
Joshua Schulman has been appointed as the new CEO, bringing with him a wealth of experience from senior roles at Michael Kors, Jimmy Choo, and Bergdorf Goodman. Sokolova indicates that Schulman’s direction may involve steering Burberry towards more affordable offerings, addressing the feedback from market participants seeking such changes.
Burberry’s executive reshuffling extends beyond the CEO role, raising questions about the future of chief creative officer Daniel Lee. Sokolova points out the need for Schulman to evaluate if Lee remains suitable for the brand’s creative direction, especially given Lee’s prior success at Bottega Veneta.
As Burberry navigates a complex economic landscape, the new leadership under Joshua Schulman is poised to redefine its strategic direction and financial stability.
