Burberry appoints new CEO, shares latest profit warning

July 15, 2024

The incoming executive will begin work later this week. Image credit: Burberry Joshua Schulman, former CEO of U.S. fashion brand Coach, replaces Jonathan Akeroyd, whose departure is effective immediately. Image credit: Burberry

By Luxury Daily News Service

British fashion label Burberry is still attempting to find its footing.

Following a mutual agreement reached with Burberry's board of directors, Joshua Schulman, former president and chief executive of U.S. fashion brand Coach, will replace Jonathan Akeroyd, who departs Burberry effective immediately. The company is announcing the appointment of a new CEO as it issues a profit warning, flagging that operating losses for the first half of the fiscal year are expected.

“I am pleased that Josh will be joining Burberry as our new chief executive officer,” said Mr. Murphy, in a statement.

“Josh is a proven leader with an outstanding record of building global luxury brands and driving profitable growth,” he said. “He has a strong understanding of our brand and shares our ambition to build on Burberry’s unique creative heritage.

“His extensive experience in luxury and fashion will be key to realizing Burberry’s full potential.”

Steady hand
Relocating from New York City to London for the role, Mr. Schulman will begin reporting directly to Burberry chairman Gerry Murphy on Wednesday.

The 52-year-old California native holds a trove of executive experience managing a range of retailers, from high-level maisons, including Italian fashion label Gucci and French fashion house Saint Laurent, to accessible luxury players and brands with mass market appeal, such as American clothing and accessories producer Gap Inc. and American designer Kenneth Cole's eponymous apparel line, to name a few.

The businessman served as the CEO of British footwear label Jimmy Choo from 2007 until 2012, before transitioning to U.S. luxury department store Bergdorf Goodman and spending five years as president.

He went on to lead teams at other companies, including U.S. retail giant Neiman Marcus Group and British wall covering maker Farrow & Ball, eventually returning to Capri Holdings to run U.S. fashion label Michael Kors from 2021 to 2022. Mr. Schulman now looks to reverse Burberry's fortunes as a profit warning reaches investors worldwide.

The new CEO has nearly 30 years of experience as a luxury executive. Image credit: Burberry

The trading update, released today, July 15, reveals that the brand's retail revenue fell 22 percent year-over-year in the 13 weeks ended June 29, 2024. The sales malaise is attributed to macroeconomic uncertainty.

For the full year, the label foresees wholesale revenues declining by nearly 30 percent, citing APAC and the Americas as its two toughest markets at the moment.

“I am deeply honored to join Burberry as chief executive officer,” said Mr. Schulman, in a statement.

“Burberry is an extraordinary luxury brand, quintessentially British, equal parts heritage and innovation,” he said. “Its original purpose to protect people from the weather is more relevant than ever.

“I look forward to working alongside Daniel Lee and the talented teams to drive global growth, delight our customers and write the next chapter of the Burberry story.”

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