Burberry has replaced boss Jonathan Akeroyd after just over two years in the job as the luxury fashion firm said it is set to slump to a loss and halted shareholder dividend payouts.
The group said Mr Akeroyd is leaving with immediate effect “by mutual agreement with the board”.
He will be replaced as chief executive by former Michael Kors boss Joshua Schulman, who takes on the role from July 17.
Burberry made the unexpected announcement as it warned it will record a first-half operating loss if retail sales continue to fall at the current pace, having plunged by 21% on a same-store basis in its first quarter to June 29.
It said full-year earnings will also be lower than expected, and suspended its dividend.
Chairman Gerry Murphy said it is a “disappointing” performance but insisted the group is taking “decisive action” to turn round flagging sales.
He said: “Our first-quarter performance is disappointing.
“We moved quickly with our creative transition in a luxury market that is proving more challenging than expected.
“The weakness we highlighted coming into 2024-25 has deepened and, if the current trend persists through our second quarter, we expect to report an operating loss for our first half.”
He added: “We are taking decisive action to rebalance our offer to be more familiar to Burberry’s core customers whilst delivering relevant newness.
“We expect the actions we are taking, including cost savings, to start to deliver an improvement in our second half.”