Burberry to change CEO and suspend dividend payment


07/16/2024

One of the top producers of luxury goods in the world, Burberry Group Plc of Britain, said in a press release that it is replacing its CEO and delaying its dividend distribution due to unsatisfactory first-quarter fiscal 2025 performance.



Ssu
Jonathan Akeroyd will leave his position as CEO with immediate effect. In his stead will be Joshua Schulman, the former CEO of Coach and Michael Kors, two fashion firms.

Burberry's revenue was 458 million pounds ($595 million) for the first quarter that concluded on June 29, which was 22% less than the same period in the previous fiscal year. Excluding currency swings, the figure decreased by 20%.

The company's first-quarter results were deemed "disappointing" by Chairman Gerry Murphy, who also pointed out that the luxury goods sector was experiencing more difficult circumstances than anticipated.

If the industry's downward trend persists in the second fiscal quarter, Murphy warned, Burberry may incur an operational deficit in the first half of the year. Operating profit for the entire fiscal year 2025 is probably going to be less than what is currently anticipated given these conditions.

Consequently, the company has made the decision to forgo paying dividends in FY2025.

source: ft.com