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Burberry Axes CEO and Dividend, Warns on Profit

A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
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Burberry Axes CEO and Dividend, Warns on Profit

A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls

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.
A slow down 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, Reuters said.
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 it would scrap this year's dividend to invest in growth.
Burberry has been in turnaround mode for sometime, and 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 US brand Michael Kors from 2021-2022 and before that brand president at Coach.
While some higher end luxury brands like Hermes and Prada have proved to be more resilient, Burberry has struggled.
Shoppers in the United States and Europe have grown more cautious as the cost of living has risen, while appetite in China has been deflated by a property crisis and record youth unemployment.
Burberry said on Monday it would switch its offer back to be "more familiar" to its "core customers", with a marketing campaign for outerwear to launch in October. Its last collection departed from its classic camel, red and black check print in favor of bold colors.
It said it expected to see an improvement in its second half, and would also find cost savings.
Shares in Burberry have lost 57% of their value over the last 12 months, underpeforming Britain's bluechip index which is up 13%.

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Fashion

'Fashion Power': Zarny, the Myanmar Refugee Turned Tokyo Designer

Zarny draws on his roots for his designs, which have been worn by politicians and royalty. Kazuhiro NOGI / AFP
Zarny draws on his roots for his designs, which have been worn by politicians and royalty. Kazuhiro NOGI / AFP
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'Fashion Power': Zarny, the Myanmar Refugee Turned Tokyo Designer

Zarny draws on his roots for his designs, which have been worn by politicians and royalty. Kazuhiro NOGI / AFP
Zarny draws on his roots for his designs, which have been worn by politicians and royalty. Kazuhiro NOGI / AFP

Having fled Myanmar for Japan with his parents as a child, Shibuya Zarny began his fashion career as a model in Tokyo and went on to make clothes for royalty.
"Fashion is an art that has enabled me to survive," the designer, whose label recently held a 10-year anniversary show in Bangkok, told AFP.
The runway looks featured nods to Southeast Asian design, from leaf and eye motifs to jewelry worn under colorful jackets by shirtless male models.
Zarny's parents came to Japan as political refugees in 1993 when he was eight. As a teenager, dressing with style became a way for him to avoid being bullied.
His mother first taught him dressmaking, and before long Zarny, with his slim silhouette and intense stare, had been scouted as a model on a dance floor in the capital.
"At the time we had no Instagram," he recalled, so to see and be seen he would hang out at bars, arcades and novelty photo booths called purikura.
Zarny often went to Shibuya, the youthful district he later took as his first name.
"At that time Shibuya was really dangerous. There was a whole underground scene" with yakuza gangsters, he said.
As his career took flight, Zarny launched his eponymous label in 2011, a year before finally securing Japanese nationality.
The fledgling designer gifted 70 longyi -- a traditional garment that ties at the waist -- to Myanmar democracy leader Aung San Suu Kyi.
She wore a lilac one to accept the Nobel Peace Prize in 2012, a moment which Zarny said "changed my life".
'Brave heart'
Alongside his catwalk endeavors over the following years, Zarny acted as a mediator between Japan and Myanmar.
He even accompanied Japan's Princess Yoko of Mikasa -- dressed in a Zarny original -- on a visit there in 2019.
Now, with Suu Kyi detained since Myanmar's 2021 coup, he is raising funds for others escaping his native country.
When the junta seized power, Zarny received a stream of messages asking for help.
"So many refugees from Myanmar came to Thailand, at the border," said the 39-year-old.
He sprang into action, working with the United Nations refugee agency (UNHCR) and organizing events in Tokyo.
"Myanmar people lost their pride, they are sad. So I want to show my fashion power, to give them confidence and a brave heart."
Zarny's professional connections in Myanmar were scattered -- just one challenge he has faced in recent years.
The Covid-19 pandemic put a stop to jet-set parties, decimating demand for his expensive clothes and eventually forcing him to abandon his showroom in Tokyo's high-end Omotesando district.
One of his top clients -- politician Shinzo Abe, for whom he made suits -- resigned as prime minister in 2020 and was shot dead two years later.
Starting over
But Zarny is no stranger to starting over and has branched out into interior design.
He also made a suit for the captain of the refugee Olympic team ahead of the upcoming Games in Paris, where he hopes to one day present a collection.
These days Zarny runs his studio from a compact apartment in northern Tokyo, where dozens of small paintings showing bucolic scenes of Myanmar adorn the walls.
"My grandfather, who was an art professor, made these watercolors for me when I was a child, because I was missing Myanmar," he said.
The recent show in Bangkok has generated demand from Thai customers, leading Zarny to reflect on his roots.
"I was always thinking: where am I from? Am I a Japanese designer, or something else?" he said.
"I realized finally 'I'm from Southeast Asia'," Zarny said, adding that he wants to focus on this "original" source of inspiration.