- The luxury fashion label expected to appoint senior executive when it reveals its preliminary results later this month
- Burberry has suffered poor trading owing to decline in Hong Kong domestic tourism
- Unclear whether role would be boardroom level
Burberry is looking to create a new senior management position to support boss Christopher Bailey as he struggles with disappointing trading.
The appointment will likely be made at Burberry’s preliminary results later this month, according to the Financial Times.
Although it is unclear whether the position would be at board level, the move should be welcomed by investors, who have seen share prices tumble.
Longstanding chief creative officer Bailey was made chief executive, in addition to keeping his own role, following the departure of Angela Ahrendts, who left for Apple.
Burberry reported disappointing results for the six months to March 31 with total retail sales flatlining and like-for-likes falling 2%, brought on by a 5% slump in the fourth quarter.
The luxury retailer’s drop in like-for-likes was triggered by continued poor sales in Hong Kong, where like-for-likes tumbled 20% for the third consecutive quarter.
Chief financial officer Carol Fairweather attributed the drop in sales in Hong Kong to an ongoing fall in domestic tourism.
The finance boss said the retailer would focus on other areas of Asia – including Beijing and Japan – to offset the decline.
Burberry also warned that its Next year’s pre-tax profit would “be around the bottom of the range of analysts’ expectations” owing to the ongoing decline in tourism in Hong Kong as well as continental Europe.
The fashion retailer also said trading in the UK and Middle East “remained difficult”.