Burberry Replaces C.E.O. Amid ‘Disappointing’ Results

Burberry, the British luxury brand, on Monday reported falling sales, suspended its dividend and replaced its chief executive, as it grapples with a pullback in spending by consumers on high-end fashion and related goods.

Burberry said revenue fell more than 20 percent in its latest quarter, which ended June 29.

A downturn in the luxury market was “proving more challenging than expected,” Gerry Murphy, Burberry’s chairman, said in a statement, calling the company’s recent earnings “disappointing.”

If the decline persists, he added, the company — famous for its trademark camel check pattern on trench coats, handbags and other items — would report an operating loss for the first six months of its fiscal year and a lower-than-expected profit for the full year. To bolster its balance sheet, Burberry paused its dividend.

Burberry’s shares dropped 15 percent in London in early trading on Monday.

The company named Joshua Schulman as its new chief executive, replacing Jonathan Akeroyd, who is leaving the company immediately. The abrupt departure of Mr. Akeroyd, a fashion industry veteran who was previously chief executive of Versace and Alexander McQueen, came less than two and a half years after he was tapped to run Burberry.

Burberry has been struggling to revitalize its brand, which the company alluded to in the announcement Monday as “rebalancing” its line to include “a broader everyday luxury offer” and to emphasize “more of the timeless, classic attributes that Burberry is known for.”

But analysts at the research firm Bernstein said the repositioning had “failed.” Given the luxury industry’s weakness, “it is not surprising to see brands in transition — like Burberry — struggle,” they wrote in a note.

Mr. Schulman, 52, was previously chief executive of the American fashion brands Michael Kors and Coach.

“Josh is a proven leader with an outstanding record of building global luxury brands and driving profitable growth,” Mr. Murphy said in a statement.

The shake-up is the latest at the top of the luxury industry.

In March, Valentino announced that its creative director, Pierpaolo Piccioli, would depart after more than two decades at the fashion house. Both the chief executive and chief marketing officer at Balmain left earlier this year. Last year, Kering, the French luxury goods holding company, announced the departure of Marco Bizzarri, the longtime chief executive of Gucci, its top brand, amid a sweeping reorganization.