British luxury brand Burberry has appointed former Coach and Michael Kors CEO Joshua Schulman as its new leader, aiming to revitalize the brand amidst a recent decline in sales and customer dissatisfaction.
The company announced the appointment following a profit warning and a decision to scrap its dividend, sending shares plummeting to their lowest point in over a decade. Burberry has been facing challenges due to a slowdown in the luxury sector and a negative reaction to recent fashion choices, which have moved away from the brand’s classic designs.
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Schulman’s experience in reviving both Coach and Michael Kors offers a glimmer of hope for Burberry, which is seeking to return to its roots and focus on a “more familiar” look for its core customers. While the company maintains its ambition to move upmarket in the luxury sector, it acknowledges the need to adapt to the current market conditions.
The appointment of Schulman comes as the luxury sector faces headwinds, particularly in China, where economic uncertainties and a property crisis are impacting consumer spending. Burberry aims to address these challenges by focusing on its core customer base and adapting to the changing market dynamics.
However, the company’s future success remains uncertain, with analysts expressing mixed opinions on the effectiveness of the new direction. Despite the challenges, Burberry is hopeful that Schulman’s leadership will bring about a positive turnaround for the brand.