Fashion Enthusiast Joshua Schulman Revamping Burberry's Fate

The task of revitalizing the 168-year-old retail company will require the expertise accumulated over a 25-year career in the industry. Chair Gerry Murphy’s firm stance this week on not “reversing strategies” means the retail enthusiast must be prepared to navigate challenges with skill and innovation.

Former CEO Akeroyd, in collaboration with creative director Daniel Lee, aimed to transform the traditional outerwear brand known for its iconic trenchcoats and scarves into a “modern British luxury brand” specializing in high-end leather handbags and accessories. However, the ambitious plan backfired after just two years.

Acknowledging that Burberry may have pushed the creative transition too aggressively, especially in a time when customers are more price-conscious, Murphy admitted that the brand ventured too far, too quickly.

He stated that the renowned brand, famous for its £490 men’s polo shirts and starting Rocking Horse handbags at £1,250, is not planning to slash prices across the board. Instead, their strategy will focus on increasing sales of their classic items and introducing products at more affordable price points.

Schulman, who will be relocating from New York to London for his position at Burberry, credits his passion for fashion to his mother. “She always made sure I had a kippah [skullcap] to match every outfit,” he disclosed at an awards ceremony in 2018. Their family vacations often included trips to malls, which sparked Schulman’s early interest in retail stores.

After completing his studies at New York University and Parsons School of Design, Schulman took on key roles at Gucci and Yves Saint Laurent in the late 1990s and early 2000s. He then led Jimmy Choo as CEO in London for five years, elevating the British shoe brand into a sought-after luxury name before its sale to Labelux in 2011 for around £500 million.

During his time as president of Bergdorf Goodman, the luxury department store at Neiman Marcus Group, from 2012 to 2017, Schulman reimagined the store’s layout and expanded its online presence. His strategic move to acquire the luxury ecommerce platform MyTheresa.com in 2014 played a pivotal role in reinforcing Bergdorf Goodman’s digital footprint and market standing.

Following a successful three-year term as CEO and president at handbag manufacturer Coach, owned by Tapestry, Schulman was lauded for his achievements in increasing sales and operating income, as well as enhancing the brand’s appeal to luxury consumers with aspirations.

Upon departing Coach in 2020, Schulman took the helm at rival Michael Kors within Capri Holdings, with plans to assume the role of chief executive. However, a change of plans occurred when John Idol, the incumbent, decided to remain in his position. Consequently, Schulman departed in March 2022, after around six months, with a substantial separation package. Tapestry later announced its intention to acquire Capri.

In March, speculations arose that Murphy was in discussions with potential candidates to succeed Akeroyd at Burberry. However, the chair clarified this week that the board had not engaged in serious talks about replacing Jonathan until recently, and then proceeded swiftly.

“Josh was already familiar to many of us at the company, and we had initially been in discussions with him regarding a board position,” Murphy explained. “As things progressed, it became evident that he was interested in taking on a larger role.”

Murphy, who also serves as the chair of Tesco in the UK, dismissed claims from a retail investor this week that he had overseen a constant turnover of chief executives and financial officers since he assumed his role in 2018.

At the recent annual meeting, Murphy, the Chairman of Burberry, addressed concerns about the company’s CEO turnover, noting that he had only personally hired two out of the four CEOs in the last decade – Akeroyd and Schulman. In response to questions about the frequent changes, Murphy emphasized the importance of adapting plans when necessary and expressed confidence in the competence of the entire team.

Additionally, Murphy defended Schulman’s substantial pay package, which could amount to £5.6 million annually, inclusive of bonuses and a significant recruitment share award of up to £3.6 million. He justified the compensation by highlighting that a significant portion of it is tied to driving value for shareholders, underscoring that success for Schulman translates to success for all shareholders.

Legal expert Lydia Christie from Howard Kennedy emphasized the heightened expectations for delivery within Burberry, noting that failing to achieve a turnaround could result in further damage. The pressure to deliver results has increased, signaling the critical need for positive outcomes to benefit the company and its stakeholders.

This week, Murphy dismissed the idea that Schulman taking the helm at Burberry indicated a shift towards a more budget-friendly image for the brand. He praised Schulman’s background in luxury and reiterated the importance of upholding Burberry’s status as a high-end label.

During a briefing with employees on Thursday, Schulman emphasized that Burberry would not be transforming into a “British Coach,” as reported by a source familiar with the meeting. He highlighted the brand’s core strengths in outerwear and scarves, underscoring the importance of staying true to Burberry’s original mission of creating weather-resistant clothing.