Burberry Designates Former Michael Kors Chief Executive ‘Joshua Schulman’ As Fresh Chief Executive Amid Profit Alert

In a move to enhance its leadership, Burberry has appointed Joshua Schulman as the novel CEO, taking over for Jonathan Akeroyd with immediate effect. The company issued a caution about profits as it expects annual earnings to fall short of projections following a 20% decrease in first-quarter revenues.

Schulman, previously holding the role of president at Bergdorf Goodman from 2015 to 2020, is recognized for his adept leadership in the realms of luxury, style, and retail enterprises, with a strong emphasis on fostering expansion and enhancing value.

The label divulged disappointing results for the initial quarter, with sales plummeting by 21% to £458m during the 13-week period ending on June 29.

Sales took a downturn in the Americas and Asia Pacific zones, diminishing by 23%, while Europe, the Middle East, India, and Africa (EMEIA) witnessed a 16% dip in sales.

Gerry Murphy, chairperson of Burberry, remarked, “The performance in our Q1 FY25 is disheartening. We swiftly instigated a creative shift in response to the demanding conditions in the luxury market.

“The predicted fragility at the beginning of FY25 has worsened, and should this trend persist into Q2, we envision an operational deficit for the first six months of the year.

“Given the ongoing trade environment, we have chosen to halt dividend payouts for FY25. Our strategical steps are designed to realign our offerings to better resonate with Burberry’s key clientele, all the while introducing new and pertinent merchandise.

“We anticipate that through our planned moves, which include expense-saving measures, progress will begin to surface in the latter part of the year, strengthening our competitive stance and fostering lasting expansion.”

Recent updates suggest that Burberry is contemplating substantial job reductions as part of a program to curb costs, following a 36% decrease in annual earnings to £418m for the period ending on March 30.

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