Burberry Replaces C.E.O. Amid ‘Disappointing’ Results

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Burberry Replaces C.E.O. Amid ‘Disappointing’ Results

Burberry, the British luxury brand, on Monday reported falling sales, suspended its dividend and replaced its chief executive, as it grapples with a pullback in spending by consumers on high-end fashion and related goods.

Burberry said revenue fell more than 20 percent in its latest quarter, which ended June 29.

A downturn in the luxury market was “proving more challenging than expected,” Gerry Murphy, Burberry’s chairman,

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, calling the company’s recent earnings “disappointing.”

If the downturn persists, he added, the company — famous for its trademark camel check pattern on trench coats, handbags and other items — would report an operating loss for the next six months and a lower-than-expected profit for current fiscal year. To bolster its balance sheet, Burberry paused its dividend.

Burberry’s shares dropped 15 percent in London during early trading on Monday.

The company named Joshua Schulman as its new chief executive, replacing Jonathan Akeroyd, who is leaving the company immediately. The abrupt departure of Mr. Akeroyd, a fashion industry veteran who was previously chief executive of Versace and Alexander McQueen, came less than two and a half years after he was tapped to run Burberry.

Mr. Schulman, 52, was previously chief executive of the ********* fashion brands Michael Kors and Coach.

“Josh is a proven leader with an outstanding record of building global luxury brands and driving profitable growth,” Mr. Murphy

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