Burberry turns to ‘spirit of Britain’ in revival push

Fashion house’s new boss aims to ‘course correct’ recent embrace of modern niche designs

Copy link
twitter
facebook
whatsapp
email
Copy link
twitter
facebook
whatsapp
email
Burberry’s new chief executive has vowed to focus the brand on the “spirit of Britain” as he seeks to revive the ailing company.
Joshua Schulman, who took over as chief executive in July, said Burberry would emphasise its “quintessentially British” heritage under his watch as he seeks to revive flagging sales and return to profit.
Burberry revealed it had swung to a £53m loss in the six months to the end of September, compared to a £223m profit a year earlier.
Revenues were down by a fifth compared to last year at £1.1bn, with sales in Asia and the US having been particularly weak.
Mr Schulman said he was “acting with urgency” as he unveiled a turnaround plan on Thursday that involved cost cutting and a change in creative direction.
He said: “Burberry is an extraordinary brand and it is quintessentially British. And the magic here is that juxtaposition of our heritage and innovation.
“At its best, Burberry has done that in a way that surprises and delights customers and brings the spirit of Britain around the world.”
The brand, which was established in 1856 in Basingstoke, is one of Britain’s most iconic fashion brands, having designed trench coats and chequered scarves that were worn by Queen Elizabeth II.
However, Mr Schulman said the company had lost focus and become distracted by modern designs and fashion trends “with a niche aesthetic”.
The new chief said he was “correcting course” by focusing more on the brand’s heritage and Britishness.
It recently launched its Christmas advertising campaign featuring British actors David Tennant and Alex Hassell, both of whom star in the new TV series Rivals based on the Jilly Cooper book. Olivia Colman, who played Elizabeth II in Netflix’s The Crown, also starred in a recent campaign.
News of a turnaround plan boosted shares in Burberry, with the company up more than 20pc on Thursday. This marked a record daily gain for the retailer. However, the share price is still down around two thirds since early 2023.
It follows years of stalled attempts by Burberry’s previous chief Jonathan Akeroyd to improve sales. Mr Akeroyd, a British luxury veteran, had also pledged to refocus the company on its “Britishness” when he took over in 2022.
However, Mr Akeroyd also sought to add more cutting-edge fashions to the Burberry range to try attract new customers. Chairman Gerry Murphy later admitted that the company had gone “too far too fast”.
Mr Schulman, who joined Burberry from US company Coach, said the brand would instead focus back on its core customers.
Under the new turnaround plans, Burberry plans to cut £40m worth of costs out of the business. Around £25m will be stripped out during its current financial year. Mr Schulman wouldn’t be drawn on whether that would involve job cuts.
Burberry has faced criticism that prices rose too high under previous management. Mr Schulman’s background running an affordable luxury brand in Coach had led to speculation that he may seek to take Burberry more downmarket.
However, he said on Thursday that he was not seeking to cut prices and had “no plans to turn Burberry into an accessible luxury brand”.
Copy link
twitter
facebook
whatsapp
email