Burberry, a renowned UK fashion group, is undergoing significant changes as it grapples with a sales slump. Joshua Schulman, previously at Michael Kors, has been appointed as the new CEO, replacing Jonathan Akeroyd. This leadership change coincides with a sharp drop in sales and a warning from Burberry that profits may fall short of expectations if current trends persist. The company has also decided to suspend dividend payments for the current financial year. Retail revenues have fallen by 21% in the three months leading up to 29 June, with sales in the Asia Pacific region and the Americas experiencing some of the largest declines. Amid these challenges, Burberry is taking decisive actions, including cost-cutting measures and a potential return to more traditional colours and designs, to improve its performance in the second half of the year. Despite these efforts, shares in Burberry have more than halved over the past year, indicating that the new CEO has a significant task ahead to stabilise the company and restore investor confidence.
Blog Q - How might the appointment of a new CEO, such as Joshua Schulman at Burberry, influence the strategic decisions of a company facing a downturn in sales?
