Burberry’s CEO change signals a deep shift in its strategy as the iconic British trench coat maker grapples with challenges in the luxury market. Joshua Schulman, who once led Michael Kors, Coach, and Jimmy Choo, will replace Jonathan Akeroyd, effective immediately. This move comes after Burberry’s share price nearly halved since Akeroyd took the reins in April 2022. The appointment reflects the brand’s urgent need to reassess and steer its course.

On Monday, Burberry also suspended its dividend and flagged the potential for a loss in the first half of the financial year. The slowdown in luxury sector sales has extended into July, forcing Burberry to recalibrate its strategy. Despite attempts to attract high-end customers through a renewed focus on its British heritage, outerwear, and a fresh logo under designer Daniel Lee and Akeroyd’s leadership, results have been disappointing.

The struggles aren’t new for Burberry. After Angela Ahrendts’ departure in 2014, the company has seen a revolving door of leadership. Christopher Bailey’s combined role as CEO and chief creative officer led to investor dissatisfaction, followed by Marco Gobbetti’s tenure where strategies to elevate the brand and push pricing higher didn’t succeed as planned.

Chairman Gerry Murphy acknowledged the tougher-than-expected market conditions and emphasized a return to core clientele while introducing new product offerings. Burberry’s revenue for the quarter ending June 29 fell by 22% to £458 million, with comparable same-store sales dropping 21%.

With Schulman at the helm, Burberry’s strategic pivot aims to restore faith among investors and customers alike while navigating the complexities of a soft luxury market.