Burberry Appoints New CEO as Revenue Slides 22% Amid Weak Demand

British fashion label Burberry has announced the immediate departure of its chief executive, Jonathan Akeroyd, citing "disappointing" results. Akeroyd, who has been at the helm since 2017, will be replaced by Joshua Schulman, a seasoned executive with experience leading American fashion brands Michael Kors and Coach.

Schulman has been hailed as a "proven leader with an outstanding record of building global luxury brands and driving profitable growth" by Burberry’s chair, Gerry Murphy. Murphy also described the company’s recent performance as "disappointing", with revenue sliding 22% to £458 million ($594 million) in the first quarter, which ended on June 30.

The decline in revenue is a major concern for the luxury fashion brand, particularly given the challenging market conditions in the sector. Weak demand, particularly in China, has been a major factor, with Gucci owner Kering issuing a profit warning in April.

As a result, Burberry has announced plans to cut costs and mitigate the risk of an operating loss in the first half of the year. Founded in 1856 by Thomas Burberry, the iconic British fashion house is known for its signature tartan pattern and high-quality trench coats.

The appointment of Schulman as CEO comes as a response to the company’s struggling performance, and the new leader will be tasked with driving growth and reviving the brand’s fortunes. With his extensive experience in the luxury fashion sector, Schulman is well-equipped to navigate the challenges facing Burberry and lead the brand to a brighter future.