has become the latest fashion brand to face choppy waters following a plunge in sales amid a wider downturn for the fashion sector. One of the UK’s standout global brands, Burberry has announced it will replace boss Jonathan Akeroyd with immediate effect after only two years in the job. He will be replaced as chief executive by former Michael Kors boss Joshua Schulman, who will take on the role later this week.
Burberry made the unexpected announcement as it warned it will record a first-half operating loss if retail sales continue to fall at the current pace, having plunged by 21 per cent on a same-store basis in its first quarter to June 29. It said full-year earnings will also be lower than expected, and suspended its dividend, sending shares down more than 17 per cent on Monday. Former Gianni Versace boss Mr Akeroyd took on the top job at Burberry in April 2022 with a so-called “golden hello” worth around £6 million and was tasked with returning sales to pre-pandemic levels.
There was a boom in the sector following the pandemic, as consumers engaged in “revenge shopping” to compensate for the forced savings during lockdowns. However, Mr Akeroyd’s tenure was hampered by a raft of high-level departures and a rout in the luxury retail sector amid a global cost-of-living crunch – the last year has seen a major slowdown in sales. Soon after he joined, its well-respected chief financial and operating officer, Julie Brown, said she was leaving after six years, whi.
