Burberry Axes CEO And Dividend, Warns On Profit

British luxury group Burberry named former Michael Kors boss Joshua Schulman as its new chief executive on Monday, axing Jonathan Akeroyd after two years as it warned on profit and scrapped its dividend, Sarah Young reported for Reuters.

Based on current trends, Burberry may miss forecasts for annual profit and would scrap this year's dividend to invest in growth. I Photo: Terence Faircloth Flickr

A slowdown in the luxury sector has hit Burberry harder than rival brands, derailing the 168-year-old British name at a time when it had been trying to move upmarket, and triggering the latest change at the top of the company.

For the 13 weeks to June 29, underlying sales slumped 21% as the company said weakness in its market deepened.

It warned that on current trends it would miss forecasts for annual profit and would scrap this year's dividend to invest in growth.

Burberry has been in turnaround mode for some time under a number of different bosses. Designer Riccardo Tisci exited in 2022 after less than five years. Akeroyd's predecessor left after four years.

"This is a kitchen sink exercise par excellence, and underscores the enormity of the challenge facing Burberry in a world where Chinese sales can no longer be taken for granted," Chris Beauchamp, chief market analyst at online trading platform IG said.

Schulman was CEO of the U.S. brand Michael Kors from 2021-2022 and before that brand president at Coach.