Burberry’s boss yesterday vowed to return the brand’s focus to ‘timeless British luxury’ as he outlined plans to revive its fortunes and fend off takeover talk.
Joshua Schulman, who took the top job in July, admitted the firm, best known for its trench coats, had lost its way in recent years.
But he insisted the 168-year-old company had a strong future as an independent business.
It comes amid recent speculation that Burberry, whose share price has fallen by two thirds since April 2023, could be snapped up by Italian ski wear firm Moncler.
Schulman, a New Yorker, impressed investors after pledging to emphasise the firm’s outerwear offering – including its signature check-print coats and scarves.
He said a current ‘it’s always Burberry weather’ marketing campaign – featuring British stars such as Oscar-winner Olivia Colman sipping tea and enjoying the great British countryside – have already helped improve perceptions of the brand.
And the group is to give less energy to ‘niche’ and ‘modern’ designs, which have been ‘skewed to a narrow base of luxury customers,’ Schulman said.
‘We are pivoting to timeless British luxury, juxtaposing heritage and innovation across all our touch points in a more recognisable expression of Burberry,’ he said.
His insistence that change is needed was underscored by results showing a 20 per cent slump in sales for the six months to September 28 while it swung to a pre-tax loss of £80million.
Schulman , who took over from Jonathan Akeroyd, said he was on a mission to ‘course correct’ after a mismanagement of the brand and its core products.
Prices had been hiked too high for products such as handbags, Schulman added, and Burberry would now offer a broader range of prices on flagship outerwear products. Currently its coats range from £1,150 to £7,900.
But Schulman was adamant the group would still maintain its desirable luxury status and was not in a rush to slash prices to become ‘accessible’.
There have been questions over creative director Daniel Lee’s future at the business.
But Schulman yesterday said ‘everybody is focused on the same outcomes, and everybody is working together very well’.
Chairman Gerry Murphy has previously said the business ‘probably went a bit too far, too fast’ with raising prices and targeting a super-wealthy bracket.
Against a backdrop of swirling takeover talk, Schulman said that landlords and customers ‘see advantages for Burberry to be an independent luxury brand’, as it makes it stand out against fashion house rivals.
This will have been reassuring news to those who fear Burberry could be next to exit the London stock market.
Both Moncler and Burberry have refused to comment on bid rumours.
Schulman, former boss of handbag firm Michael Kors, struck an upbeat tone as he announced an ambition for annual sales to hit £3billion – although he did not give a deadline for this.
AJ Bell investment director Russ Mould warned: ‘The one thing out of Schulman’s control is Chinese consumer sentiment, with the weak backdrop in China extremely unhelpful to Burberry given its reliance on this market in recent years.’
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