In a recent development, British luxury group Burberry has announced the appointment of Joshua Schulman as its new CEO, leading to the departure of current CEO Jonathan Akeroyd. The company also issued a profit warning, citing a decline in underlying sales of 21% in the 13 weeks leading up to June 29. As a result, Burberry plans to refocus on its classic check print in an effort to boost sales. If current trends persist, the company's full-year operating profit is expected to fall below consensus. The appointment of Schulman and the profit warning reflect Burberry's efforts to navigate the challenges faced by the luxury sector [d04060f3].
This news comes in the wake of AXA SA's CEO Thomas Buberl's strategic plans to diversify the company's business and reduce its dependence on financial markets. Buberl aims to shift AXA's focus from life insurance to property and casualty insurance and health insurance, in order to make the company less sensitive to market performance. He anticipates an increase in claims in the marine and aviation sectors due to geopolitical crises. AXA is set to unveil a new strategic plan later this month, outlining its vision for future growth and expansion [fc31eb0b].
In a similar vein, Rolls-Royce CEO Tufan Erginbilgic has been implementing a business turnaround strategy for the engine manufacturer. Erginbilgic's efforts have resulted in a doubling of profit margins and record free cash flow in 2023. He is considering options such as a return to the narrow-body planes market and expanding the mini nuclear reactors business. Erginbilgic emphasizes the importance of a strong balance sheet before considering shareholder distributions [d8a284b8].