Burberry plummeted as CEO exited on fresh profit warning

Burberry (LSE:BRBY) share price plummeted on Monday after the British fashion house replaced its chief executive and spooked investors with a profit warning.

Joshua Schulman replaced Jonathan Akeroyd as the brand’s new chief executive.

The company is grappling with a significant sales decline, according to the fresh profit warning issued on Monday.

Burberry reported a 23% drop in sales in both the Americas and Asia Pacific regions and a 16% decrease in Europe, the Middle East, India, and Africa.

The company has decided to suspend dividend payouts to shareholders.

And it revealed it plans to cut jobs, mainly in its UK corporate office.

In terms of strategy, the marketing plan is to refocus on so-called timeless classic products such its iconic trench coats and scarves.

It also plans to reconnect with the brand's core customers and revitalize its market position.

“We are taking decisive action to rebalance our offer to be more familiar to Burberry's core customers whilst delivering relevant newness,” Burberry chair Gerry Murphy said in a statement.

“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." In London, Burberry was down 143p or 16.17% changing hands at 743.20p.