The rise in Burberry’s share price is perplexing given the news that chief creative officer Riccardo Tisci is leaving, as he was well respected.
Yet in the fickle world of fashion, trends come and go, and so the arrival of someone new may just have excited investors.
Tisci’s replacement is Bradford-born Daniel Lee who is credited for helping to breathe some new life into Italian luxury brand Bottega Veneta.
Russ Mould, investment director at AJ Bell, said: “Burberry’s main challenge of late has been linked to Covid restrictions rather than whether someone likes its latest scarf or coat. Sales have suffered because of Covid lockdowns in China, one of its key selling regions. Solving that problem is currently far more important to its business than what Lee might conjure up with a pen and sketchbook.
“Tisci’s departure also begs the question if there is some unrest inside the company, given that chief operating and financial officer Julie Brown last week handed in her notice. Perhaps it’s simply a case of new chief executive Jonathan Akeroyd working out who he wants on his team and who might not fit with his strategy for the business. We’ll get an insight into what he plans for Burberry with a strategy update in November.”
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