At Burberry’s AGM, Tempers Flared, but It Wasn’t the Shareholders Who Were Angry

LONDON — Of the people who could have protested at Burberry’s annual general meeting on Tuesday, it was PETA that made all the noise, shouting about the brand’s use of cashmere rather than the shrinking share price, canceled dividend for 2025, or the ejection of chief executive officer Jonathan Akeroyd .

Burberry Shakeup: Joshua Schulman Replaces Jonathan Akeroyd at Burberry Helm as Retail Sales Plummet 22% in Q1

Tuesday’s meeting was humming along quietly with chairman Gerry Murphy fielding questions about Burberry ’s pricing, strategy, product assortment and the upcoming round of layoffs when protesters burst into the underground reception room at the Conrad London St. James’s.

Dressed in Burberry-style check scarves, a few young men and women screamed “Cashmere is cruel! Shame on Burberry!” They waved signs that read “Burberry: Cashmere Is Bloody Cruel,” and got into prolonged scuffles with security guards, who eventually hauled them out of the room.

A PETA member who was sitting in the audience followed up the protest with less shouty — but just as angry — questions about alleged abuse of goats in Burberry’s cashmere supply chain.

Murphy said Burberry already conducted an investigation following an earlier complaint from PETA, and found no evidence of unethical treatment of animals, or of negative impact on biodiversity in the brand’s cashmere supply chain.

“I apologize — that was not part of the plan,” he told shareholders, adding that “cashmere remains an extremely popular fabric in the luxury goods industry.”

He also said that better times were on the way.

Murphy told shareholders that the consumer boom following COVID-19 “softened,” but believes that the macro-economic “headwinds” that Burberry is facing will abate with time.

He addressed Akeroyd’s departure, telling shareholders that it was not planned. Indeed, Akeroyd’s name was on the original AGM agenda, set out for re-election.

“Sometimes when things don’t work, you change plans,” Murphy said, adding that it will be up to the new CEO Joshua Schulman to make changes and “to decide the shape of the new team.”

Me+Em Is the Go-to Label for Royals, Celebrities and Labour Party Politicians

He also told shareholders that, over the next few months, Burberry will undergo a “re-centering,” meaning it will rethink its merchandise mix and pricing architecture to offer a broader range of “entry, mid-level, and elevated” products — not just ultra high-end merchandise.

He admitted that Burberry’s assortment “has skewed towards higher-priced” merchandise and that “more product at entry level will be made available” soon.

Murphy added that under Schulman , who starts work on Wednesday, there would also be “a complete reset of marketing messaging,” covering everything from the website to social media to merchandising.

He also downplayed Burberry’s cost-cutting plans, and confirmed the company was “looking to save tens of millions, not hundreds of millions, of pounds.” Although the company is planning to lay off a few hundred corporate managers, there will be no store or factory closures, Murphy said.

He said the cost-cutting plan, and an expected bounce in revenue growth going forward “will contribute to the long-term value of the company.”

Murphy is also hoping those changes will reverse the downward spiral of Burberry’s share price, which he described as “unnaturally low.”

Burberry’s shares continued to decline on Tuesday, although not in the double digits as they did following the first-quarter trading update on Monday, which came with the warning of a possible operating loss in the fiscal first half.

Burberry shares closed down 3 percent at 7.21 pounds. All resolutions at the AGM were passed by shareholders.

English High Court Cancels 2021 Sale of SMCP Shares