Iconic British luxury brand Burberry has named Joshua Schulman as its fourth boss in a decade in a surprise shake-up for the beleaguered label.
He will replace Jonathan Akeroyd, who has held the role for more than two years but will now depart the London-headquartered business.
Schulman is an industry veteran, having spent more than 33 years in fashion.
He served as chief executive of Michael Kors from 2021 to 2022. Prior to that, he worked as brand president of Coach, from 2017 to 2022, where he was credited with turning the label around.
Investors will be looking to see whether he can make the same kind of change at Burberry, which has suffered a bruising few years during the luxury slowdown.
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An attempted brand turnaround has already stumbled when Akeroyd and creative director Daniel Lee tried to reshape Burberry as a more upmarket and exclusive brand, but lost out to the global slump in demand, as well as industry stalwarts like Prada and Miu Miu.
Burberry’s trading update this morning made a “tough read” for investors, according to equity analyst at Hargreaves Lansdown Aarin Chiekrie.
The group revealed it expected to report an overall revenue decline of 25 per cent for the first half of the year.
Burberry’s ‘weaknesses have worsened’
Burberry shares opened down 12 per cent in early deals and had fallen by over 15 per cent by late morning. The stock has lost 46 per cent year-to-date and 64 per cent over the past 12 months.
“The decision to suspend dividends amidst a profit warning signals a deep-rooted need for swift reassessment,” Ana Friedlander, Industry Strategy Director for Fashion at Infor, said. “Today’s news from Burberry underscores critical challenges in profitability, investor confidence, and strategic direction.”
“Weaknesses that were already highlighted by the group coming into the financial year have worsened, with first-quarter revenue falling by an eye-watering 20 per cent” Chiekri said.
“If current trends continue, operating profits look set to fall short of market expectations and the group expects to make a loss over the first half.”
Following the announcement that Akeroyd has exited, Bernstein analyst Luca Solca said in a note: “It was apparent that the attempted upmarket repositioning had failed — as well as the relaunch under Daniel Lee as creative director — as Burberry heavily discounted its products online and elsewhere.”
Schulman will oversee a “rebalancing” initiative to include everyday, cheaper products to appeal to a wider range of customers. The restructuring is likely to lead to job losses in the company, the CEO hinted in the trading update.
His CV also includes stints at Yves Saint Laurent and Gucci, as well as president of US retailer Bergdorf Goodman and CEO of Jimmy Choo.
“With Schulman, former Coach leader, now at the helm, Burberry has a pivotal opportunity to redefine leadership strategies, reaffirm brand identity, restore exclusivity, and drive innovation.
His initial actions suggest a focus on revitalising Burberry’s traditional strengths while modernising its offerings,” Friedlander said.
“The overall success of the new CEO will depend on his ability to navigate the complex interplay of tradition and innovation while steering the company toward sustained growth and relevance in this very dynamic and competitive industry,” she added.
Burberry chairman Gerry Murphy said: “Josh is a proven leader with an outstanding record of building global luxury brands and driving profitable growth.
“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 realising Burberry’s full potential.”
Schulman will paid a base annual salary of £1.2m.
