British luxury fashion house Burberry announced on Monday that it has appointed Joshua Schulman, former CEO of Michael Kors and Coach, as its new chief executive officer.

The company has also announced the immediate departure of its former CEO, Jonathan Akeroyd, following a dismal quarter that saw sales plummet by more than 20%.

Jonathan Akeroyd who had been with Burberry for just two years, will be replaced by Joshua Schulman, a seasoned executive with previous CEO roles at Coach and Michael Kors.

Burberry's recent financial performance has been disappointing, prompting the company to issue a profit warning and scrap its dividend. The announcement led to a significant drop in Burberry's stock, which fell 17% in midday trading on the London Stock Exchange.

Gerry Murphy, Burberry's chairman, did not mince words in his assessment of the situation. He described the brand's quarter as "disappointing" and acknowledged that the luxury marketplace has become more challenging than anticipated.

In response to the financial setbacks, Burberry is taking decisive action to realign its offerings to better meet the preferences of its core customers while introducing new and relevant products. Murphy expressed optimism that these actions, including cost-saving measures, would yield improvements in the second half of the fiscal year, enhance Burberry's competitive position, and support long-term growth.

Burberry, renowned for its iconic trenches and purses, plans to pivot its focus towards high-end spenders while expanding its range of "broader everyday luxury" items. Additionally, the company is set to launch a new website in August to improve its digital presence and customer engagement.

Neil Saunders, a retail analyst and managing director at GlobalData Retail, noted that Burberry has been on a "long losing streak" with declining sales and profits. He attributed the brand's struggles to a combination of softer demand for luxury goods and missteps in its strategic direction.

Saunders pointed out that Burberry has been on the defensive and that Akeroyd's revitalization plans have largely failed to halt the decline. He emphasized the need for a course correction and expressed hope that the new CEO, Joshua Schulman, could steer the company back on track.

Burberry's leadership change and strategic overhaul underscore the challenges faced by luxury brands in a shifting marketplace. The company's efforts to rebalance its product offerings, target high-end consumers, and enhance its digital platform are critical steps in its bid to recover and achieve sustainable growth.