Today’s news in brief-15/7/24
Luxury fashion brand Burberry has ousted CEO Jonathan Akeroyd following a sharp decline in sales during its first quarter. Sales plummeted by 21%, amounting to ยฃ458m, with the Americas and Asia Pacific regions experiencing a 23% drop, and Europe, the Middle East, India, and Africa (EMEIA) reporting a 16% fall. The company has appointed Joshua Schulman, former Michael Kors CEO, as Akeroyd’s replacement. Burberry’s chair, Gerry Murphy, attributed the disappointing performance to challenging market conditions and announced measures to cut costs and rebalance their product offerings. The company also decided to suspend dividend payments for FY25, anticipating a potential operating loss for the first half of the fiscal year.
The government is set to pass the Crime and Policing Bill, which will make assaulting, threatening, or abusing retail workers a separate criminal offence. This legislative move comes in response to escalating incidents of theft and violence against shop floor staff. Retailers, including Tesco, have seen a 39% increase in serious incidents involving weapons, prompting calls for stronger legal protections.
Sporting goods retailer Decathlon has unveiled Decathlon Pulse, a subsidiary dedicated to investing in new businesses and fostering long-term growth in the sports industry. Led by CEO Franck Vigo and chaired by global CEO Barbara Martin Coppola, Decathlon Pulse aims to build and scale innovative concepts that complement Decathlon’s core activities. The subsidiary will invest in sports brands and distributors, maintaining their autonomy while enhancing Decathlon’s market position and customer offerings.
Fast Retailing, owner of Uniqlo and Theory, has raised its full-year operating profit forecast by 24.6% to ยฅ475bn (ยฃ2.3bn) after reporting a strong financial performance in the first nine months of the fiscal year. Revenue grew by 10.4% to ยฅ2.3tr (ยฃ11bn), driven by robust international sales despite challenges in Greater China. Sales in Japan and other regions such as North America, Europe, and Southeast Asia showed significant growth, with expectations of continued expansion in the second half of fiscal 2024.
