Burberry has issued another profit warning for the 2025 financial year, as its chief executive officer (CEO), Jonathan Akeroyd, stepped down from the role.

In the first quarter of its current financial year, the British luxury fashion brand saw its revenue drop by 22% year-on-year to £458m, while its comparable stores sales fell by 21% in the same period.

The firm said the slowdown in trading that it experienced in Q1 has continued into July, leading it to estimate an operating loss in the first half of the current financial year, while its operating profit is expected to be below expectations.

As a result, the firm has suspended dividend payments.

In order to improve the brand’s situation, Burberry said it is looking to rebalance its product offer to include a broader everyday luxury offer and a more complete assortment across key categories.

It added that it is looking to drive operational efficiencies and deliver cost savings to offset the impact of inflation.

Chair at Burberry, Gerry Murphy, said: "Our Q1 FY25 performance is disappointing. We moved quickly with our creative transition in a luxury market that is proving more challenging than expected. The weakness we highlighted coming into FY25 has deepened and if the current trend persists through our Q2, we expect to report an operating loss for our first half. In light of current trading, we have decided to suspend dividend payments in respect of FY25.

"We are taking decisive action to rebalance our offer to be more familiar to Burberry's core customers whilst delivering relevant newness. 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."

The results came as the firm’s CEO, Jonathan Akeroyd, stepped down from his role after three years in the position.

He will be replaced by Joshua Schulman, who is starting in the role with immediate effect, also serving as executive director.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, added: "While Burberry’s brand repositioning has come a long way, it’s not yet sharp enough to reach the heart of the more resilient end of the luxury market.

"It appears the focus for the new chief executive will be on returning to its core image, the classic coats and camel red and black Burberry check the firm became famous for. Chopping and changing collections to attract the eye of hard to please fashion editors can confuse customers and there is set to be a return to the brand’s core principles and the traditional focus on dressing the elite."

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