Dive Brief:
- On Wednesday, it was announced that Jonathan Akeroyd, currently CEO of Versace, will take over as Burberry's CEO and executive director, effective April 1, 2023. He'll be stepping into the shoes of Marco Gobbetti, who has held the position since 2016 and will be departing in December to assume the CEO role at Ferragamo.
- Akeroyd has been leading Versace since 2016, where he's been credited with reorganizing the company and accelerating growth, according to a press release from Burberry.
- Prior to his tenure at Versace, Akeroyd served as CEO of Alexander McQueen from 2004 to 2016, and held senior fashion roles at Harrods. At Burberry, he'll report directly to Chair Gerry Murphy and the board.
Dive Insight:
Burberry appoints Versace's CEO.
Gobbetti, who joined Burberry in 2017 when the company was facing some turbulence, unveiled a ambitious turnaround plan later that year, which made some investors a bit queasy. Despite this, his sudden exit announcement over the summer was what really rattled nerves.
At the time, GlobalData Associate Retail Analyst Louise Deglise-Favre expressed concern about Gobbetti's departure, stating that over the past few years, he's turned Burberry into a more modern and relevant luxury retailer for the younger generation.
Akeroyd's appointment is seen as a positive move by UBS analysts, who believe he's well-regarded by the market, having spearheaded the turnaround of Versace and further built on the brand's heritage. However, they note that Akeroyd's start date is set for later in 2023, which could delay the presentation of a new strategy and further extend Burberry's turnaround.
Murphy, Burberry's chair, praised Akeroyd's extensive experience in leading global luxury fashion brands and driving profitable growth. And, Deglise-Favre, of GlobalData, believes Akeroyd's track record of turning around brands could prove crucial for Burberry's success. However, she points out that Burberry finds itself in a peculiar position, as Gobbetti left before completing his long-term strategy, and Akeroyd will have to either continue Gobbetti's plan or take Burberry in a new direction.
- The shift in leadership at Burberry, with Jonathan Akeroyd taking over as CEO from April 1, 2023, is a significant update in the fashion-and-beauty industry.
- Akeroyd's expertise in leading luxury fashion brands, demonstrated during his tenure at Versace and Alexander McQueen, will likely contribute to Burberry's culture and lifestyle.
- The departure of Marco Gobbetti, who was instrumental in modernizing Burberry, could have implications for the company's future strategy, especially in the realm of fashion, business, and lifestyle.
- The TV screens might show breaking news about the changes in leadership at Burberry, reflecting the impact of this decision on the finance sector and broader economy.
- Cybersecurity measures will be essential to ensure that Burberry's digital platforms remain secure during the transition period, with Akeroyd set to join the company in April 2023.
- The weather forecasts might not seem directly related to Burberry's change of leadership; however, they could impact store sales and overall consumer behavior.
- Policy decisions in different regions could influence the success of Burberry's new strategy, as Akeroyd takes over and decides whether to continue Gobbetti's turnaround plan or chart a new course for the company.
- Although AI technology isn't immediately apparent in the context of fashion, it could play a role in Burberry's future, from design to marketing, with Akeroyd at the helm.
