How British fashion icon Burberry lost its way

Some question whether part of the problem lies with a board that is large but lightweight. “I don’t recognise anyone on it,” said one former non-executive.

Is a heavy-hitter prepared to ask some tough questions needed?

Or is the bigger problem a lack of fashion nous at board level? Of 10 non-executives, only two have worked in luxury goods.

Murphy’s retail experience is more DIY than DKNY. He spent nearly five years running B&Q owner Kingfisher, leaving in 2007 with its shares trading roughly where they were when he arrived. Meanwhile, there are just two Brits, at a company where heritage is perhaps its most unique selling point – one of whom is an accountant.

Further management change is likely to reflect poorly on Murphy. Burberry is a company that has long made a drama out of succession, and that hasn’t changed since he took over from Sir John Peace in 2018.

The departure of Akeroyd’s predecessor, luxury goods veteran Marco Gobbetti in 2021, caught the board so off guard that it appeared not to have a successor lined up.

A year later, chief designer Riccardo Tisci stood down at the same time as finance boss Julie Brown departed for drugs giant GSK.

On the other hand, there are serious doubts about the direction Burberry is heading in under Akeroyd. In the wake of last month’s profits bombshell, analysts tore into the company’s strategy.

Bernstein analyst Luca Solca said it was clear that Burberry was “materially underperforming peers and the market”, adding: “No matter the reason, the brand relaunch plan is not working for the moment.”

Analysts at Citibank said: “The jury’s still out as to whether Daniel Lee’s brand aesthetics can lead to stronger commercial success and double-digit growth.”