Shares in Burberry were down as much as 15% this morning after the luxury brand reported a double-digit declines in sales across its core markets and announced the sudden departure of its chief executive.
In an unscheduled trading update the retailer said Jonathan Akeroyd is leaving the company with immediate effect “by mutual agreement with the board”. He is being replaced in the top role by former Coach chief executive Joshua Schulman who comes armed with a list of "immediate actions" to reverse the company's falling fortunes.
In what Burberry described as "disappointing" first quarter trading, stores sales in the Americas and Asia Pacific tumbled by 23% while Europe, the Middle East, India and Africa were all down by 16%. Full-year earnings will be lower than previously expected and the company has suspended dividend payments.
Burberry has been suffering amid a slowdown in demand for luxury goods, which has also hit sales at rivals such as Kering and Mulberry. Chairman Gerry Murphy said the company will be working to improve its online sales with a website revamp, while also focusing on more of the "timeless, classic attributes" for which the brand is known.
There will also be unspecified cost cuts across the business.
“We moved quickly with our creative transition in a luxury market that is proving more challenging than expected,” Mr Murphy said. “If the current trend persists through our Q2, we expect to report an operating loss for our first half.”
He added: “We expect the actions we are taking, including cost savings, to start to deliver an improvement in our second half and to strengthen our competitive position and underpin long-term growth.”
Permission sought for huge wind farm off the coast of Aberdeenshire
Developers seeking to create one of the world's largest offshore windfarms off the coast of Aberdeen have officially asked the Scottish Government for permission.
The Ossian farm would span 858km² and be located in the North Sea 84km from the Aberdeenshire coast.
Developers say it could produce enough energy to power up to 6 million homes annually and offset up to 7.5 million tonnes of carbon emissions every year.
Read the full story here.
Major update after strike threat at two Scottish airports
The threat of strike action at two Scottish airports has been lifted, after hundreds of workers agreed to an improved pay offer.
Trade union Unite said around 300 central search members based at Glasgow and Aberdeen airports, employed by ICTS, have “overwhelmingly accepted an improved pay offer, ending the dispute”.
Read the full story here.
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