Burberry replaces its CEO amid challenges in the luxury goods sector

Swatch, the world's biggest watchmaker, reported a steep drop in first half sales and earnings on Monday as demand for luxury goods in China remained weak

Burberry, as well as Cartier-owner Richemont, face challenging year-earlier comparisons when they report this week as earnings season returns in earnest. Picture: Jonathan Brady/PA Wire

Burberry replaced its chief executive and issued a profit warning after a downturn in the luxury industry thwarted the iconic trenchcoat maker’s effort to challenge high-end labels such as Chanel and Louis Vuitton.

Shares in the British company plunged nearly 17% after it announced Jonathan Akeroyd was departing after less than two-and-a-half years. He is being replaced by Joshua Schulman, a former chief executive of Michael Kors, Coach and Jimmy Choo.