Burberry has relieved its Chief Executive Officer, CEO, Jonathan Akeroyd of his role, following poor performance in the company’s sales and profits.
The British fashion label made the disclosure in a statement on Monday, while announcing the arrival of a new leader, Joshua Schulman, who it was gathered, has previously headed American fashion brands, Michael Kors and Coach.
According to Burberry, the fashion label recorded “disappointing” results under the management of Jonathan Akeroyd and was barely surviving amidst struggles.
This comes amidst a navigated weak demand by the wider luxury fashion sector, particularly in China, with Gucci owner Kering in April issuing a profit warning.
In a statement issued on Monday, Chairman of the company, Gerry Murphy, while unveiling Schulman as the new CEO, described him as “a proven leader with an outstanding record of building global luxury brands and driving profitable growth.”
Murphy expressed hope that the new CEO would salvage the label’s poor and disappointing performance in recent time, disclosing that the label’s revenue slid 22 per cent to £458 million ($594 million) in the group’s first quarter, or three months to the end of June.
The group chair also noted that Burberry had risked an operating loss in its first half, adding that, as a result, Burberry would henceforth cut costs to drive revival. Murphy revealed that Burberry would switch its offer back to be “more familiar” to its “core customers”, with a marketing campaign for outerwear to launch in October.
Burberry is a British luxury fashion house established in 1856 by Thomas Burberry. It is chiefly known for its iconic trench coats and signature tartan pattern, which has become a symbol of British fashion.
Meanwhile, Shoppers in the United States and Europe have reportedly grown more cautious as the cost of living has risen, while appetite in China has been deflated by a property crisis and record youth unemployment.
