Burberry may need a metaphorical trenchcoat to hide from the string of events that have befallen it in recent years. Like other luxury players, the iconic trench coat maker has experienced a slump in the sale of high-end goods. But unlike others, it also had to turn the entire company around simultaneously as it had lost its spark with shoppers and was in a financial mess.
Suffice it to say the twin challenges have hurt Burberry. On Monday, the British company issued a profit warning—its third one since the start of the year—and announced the departure of its CEO Jonathan Akeroyd, in a fresh affirmation of the fashion giant’s dire situation. Akeroyd will be replaced by Joshua Schulman, the former CEO of Michael Kors, Coach and Jimmy Choo.
Burberry also said it would pause dividends to shareholders, causing shares to plunge 16.6% as of 12 noon London time. “Losing 70% of its market value in just over a year is embarrassing for Burberry, given it is meant to be one of the world’s shining lights in the luxury goods market,” AJ Bell’s investment analyst Dan Coatsworth said in a note Monday.
“Swiftly hiring a new chief executive isn’t going to fix everything in an instant.” What’s brought Burberry to this point? Turnaround mission gone awry Burberry, known for its outerwear with signature checks dating back 100 years, has long attempted to regain its former glory. Since former CEO Angela Ahrendts left the company in 2014, it has also switched up creative dire.
