For more than a year, the ( ) share price has been one of the weakest in the index. But this morning (15 July) it plunged further and is down by more than 15% as I type. Change at the top Today’s first-quarter trading update drove the move lower, and the luxury fashion brand owner also announced a fast change of chief executive.
Could this be a final drive to the depths for Burberry? Is it possible the business may now finally start to turn itself around? Sometimes a new broom can sweep clean. Burberry said Jonathan Akeroyd is stepping down as chief executive and . American national Joshua Schulman is coming in as the new chief.
This is a fast switch. Schulman will start at Burberry on 17 July — just two days from now. The directors reckon Schulman has a track record of as a chief executive of global luxury, fashion and retail businesses.
I reckon every bit of that experience, talent and drive will be needed if Schulman is to get Burberry off its knees. Dire figures and a flicker of hope Today’s trading update is a car-crash of painful reading. In the 13 weeks to 29 June, comparable store sales plunged by 21% year on year.
Burberry’s chair, Gerry Murphy, said the performance is . The firm’s quick move with is proving more challenging to execute than expected. Previously highlighted weakness has .
If the negative trend persists in the current quarter, Murphy expects an operating loss for the first half. The dividend is toast. It’s been suspended But Murphy reckons .