John Smith, Chief Operating Officer Of Boboli Group, Will Step Down.

On Friday, Burberry Group PLC (BRBY.L) Boboli group issued a statement announcing that the group's chief operating officer, John Smith, will step down. He will leave office next summer and withdraw from the board.

The British company's statement said that the departure of John Smith is based on new personal interests and pursuits.

This week, the annual report of Burberry Group PLC Boboli group showed that John Smith's salary in the last fiscal year has shrunk by 47%. At the same time, the group's chief financial officer Carol Fairweather and chief executive Christopher Bailey salary have shrunk by 59% and 75% respectively.

The 58 year old John Smith service, Burberry Group PLC, Bob Lee Group, has been in the UK for 7 years since 2009.

As a non-executive director of a non operating position, she formally switched from BBC to Burberry Group PLC in 2012, and became COO by the Bob group.

Sir John Peace, chairman of Burberry Group PLC Boboli group, thanked John Smith for its contribution to the company in the past 7 years, especially in digital business, beauty business and tourism retail channel.

Under the leadership of John Smith, Burberry Bo Bo Boli became.

Industry digital benchmark, but the brand's digitalization is still mostly concentrated in the marketing level, because the whole luxury industry can not, and will not actually "digitalization", John Smith Ren group has also recovered the beauty business, internal management.

The resignation of John Smith to a certain extent alleviated the pressure of investors calling on Burberry CEO, chief creative officer Christopher Bailey to step down as soon as possible, or to discharge CEO duties only as CCO.

"The reduction of salary and the departure of COO have made shareholders want the pressure of Christopher Bailey to step down. However, at present, the weakness of the high-end retail environment and the performance of Burberry itself, it is imperative for Christopher Bailey to step down."

Luxury goods and

Tang Xiaotang, founder of retail industry consulting and investment organization No Agency, said the Burberry Group PLC Bo Bo Boli group is not as good as "one step" to let Christopher Bailey step down as soon as possible, rather than finding a scapegoat to ease market sentiment.

Since 2016, Christopher Bailey has been under pressure and has been threatened to resign only to get the Christopher Bailey of the CEO post for two years in the group management and performance, and the outside world has questioned his ability to be the chief executive and chief creative officer of two important positions.

In the Burberry Group PLC Boboli group, the Chinese market is in the doldrums, sluggish and dragging down the overall performance of the group. At the same time, Christopher Bailey's development strategy in the two other big markets in the United States and Japan has been dragged out by the analysts, because the two big markets have had the opportunity to make up for the worsening performance of the increasingly big Chinese market.

Website data show that in fiscal year 2016, fixed exchange rate, the Burberry Group PLC Bo Bo Li Group recorded a 10% decline in adjusted pre tax profits, which fell by 7.7% compared with the previous year, falling from 455 million 800 thousand pounds to 420 million 600 thousand pounds in the previous year, reduced from 2 billion 523 million 200 thousand to 2 billion 514 million 700 thousand pounds, the fixed exchange rate decreased by 1%, and the same store sales decreased by 1% a year.

Bad results also caused Burberry Group PLC's share price to drop 35.7% in the past 52 weeks. Its market value closed at less than 4 billion 800 million pounds on Friday, and its 15.39 times P/E was worse than the worst performing Prada SpA Prada group, while the latter P/E was as high as 24.67.

Christopher Bailey said in its mid May annual report that the management of Burberry Group PLC Bo Bo Boli group needs new professionals to help, but he declined to disclose other details. The rumors that the group's former CFO Stacey Cartwright may have returned has been denied by Stacey Cartwright.

For the departure of John Smith, Burberry Group PLC Boboli group and John Smith said they did not mean that the company would immediately hire a new leader to handle the retail business.

Burberry Group PLC, the Boboli group, the only strategy to be welcomed by the market in its annual report is to continue to implement the streamlined cost plan.

The Group expects to reduce the operating costs of the fixed rent and depreciation by 10% after the plan, so that the target of saving 100 million pounds per year will be achieved in the 2019 fiscal year. However, the current 2017 fiscal year savings can only be about 20 million pounds, and the next two years will generate 60 million one-time related expenditures.

As for the development of e-commerce and the reduction of product range and retail plan, the market reaction is flat.

But since John Smith is still in office for a year, and until next summer, the Christopher Bailey term is approaching, and the group is not in a hurry to find new COO. It may imply that the Burberry Group PLC bolberry group will replace CEO next year, and in fact, it may only be one year to leave Christopher Bailey. During this period, the group will not only have the time to restructure to find new ones, but also if the company can not get the post of office or the chief creative officer, the company will even need to consider the new director of innovation.

Burberry Group PLC (BRBY.L) Boboli group shares closed 1068 pence on Friday.