Pedestrians walk past a Burberry Group Plc store, left, in the Causeway Bay shopping district of Hong Kong.
Xaume Olleros | Bloomberg | Getty Images
Shares in Burberry plunged 10% at the market open on Monday after a “disappointing” first-quarter performance led it to replace its CEO and axe its dividend.
Joshua Schulman — who formerly led Michael Kors and Coach — was named new chief executive officer of the luxury giant. Burberry said former CEO Jonathan Akeroyd was stepping down “with immediate effect by mutual agreement with the Board.”
“The weakness we highlighted coming into FY25 has deepened and if the current trend persists through our Q2, we expect to report an operating loss for our first half,” Burberry Chair Gerry Murphy said in a trading update, describing the company’s first-quarter performance as “disappointing.”
“In light of current trading, we have decided to suspend dividend payments in respect of FY25 … We expect the actions we are taking, including cost savings, to start to deliver an improvement in our second half and to strengthen our competitive position and underpin long-term growth.”
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