Burberry, a well-known British luxury apparel and accessories brand, is undergoing significant changes in management and strategy. Following unsatisfactory financial results in the first half of 2024, there has been a change in the CEO position. The moves are radical. It has been decided to fire CEO Jonathan Akeroyd. The company has already named a new CEO, Joshua Schulman, the former head of Coach. He promises a return to a more traditional look and a shift of the brand toward the exclusive luxury market.
Burberry names chairman – reasons
Burberry warned investors of falling profits and canceled its dividend. Naturally, this caused the stock to fall to its lowest level in more than a decade. In the 13 weeks ending June 29, 2024, underlying sales fell 21 percent.
The company expects operating losses for the first half of the year, and shares fell 17 percent to 738 pence. Such results are the result of a slowdown in the luxury sector and customer dissatisfaction with the change in style. The company wanted to go beyond the classics associated with it and be more trendy. However, customers did not approve of such moves.
Brand history
Burberry, founded in 1856, is known for its classic trainers and distinctive check pattern. The brand was synonymous with British elegance and quality. It won acclaim around the world. In recent years, the company has tried to change its image under the leadership of Jonathan Akeroyd and the previous Italian management team headed by Marco Gobbetti and Riccardo Tisci. However, these changes have not been successful, and Burberry has not been able to maintain its growth rate.
New old direction. Joshua Schulman promises to put Burberry back on traditional track
There is something about the fact that true elegance and luxury are associated with classics. Joshua Schulman, Burberry’s new CEO, plans to return the brand to a more traditional look while taking the company to the next level of luxury. Schulman, who previously managed Michael Kors and Coach, has extensive experience in the luxury industry. Together with designer Daniel Lee, who joined Burberry in 2022, Schulman intends to revitalize the brand and attract a more affluent clientele.
The future of the British brand
Burberry plans to invest its financial surplus in growth instead of paying dividends. The goal is one – to improve the company’s financial position. The new strategy involves a return to the brand’s roots, with an emphasis on traditional, ultra-luxury products. The company wants to attract customers looking for classic elegance and high quality to help regain its position in the market.
Burberry’s management changes and new strategy aim to restore the brand to its former glory and financial stability. Joshua Schulman, the new CEO, is introducing a more traditional look and exclusive offerings to attract affluent customers and rebuild Burberry’s position in the luxury market. Time will tell whether these measures will yield the desired results and put the company back on a growth path.
Luxury News Editor
Joanna Baran
source: nytimes.com
The company: Burberry
