Joshua Schulman, Burberry’s newly appointed CEO, has revealed a strategic plan aimed at reviving the struggling luxury retailer with the intention to “reignite brand desire, enhance performance, and foster long-term value creation.”
The British company saw its revenue fall by 20% during the six months that concluded on 28 September, with decreases in both retail and wholesale sectors.
Burberry reported an adjusted operating loss of £41m, a stark drop from the £223m profit recorded in the same timeframe last year.
The second quarter’s results reflected those of the first, with comparable store sales plummeting by 20% year-on-year, indicating persistent difficulties, including price hikes particularly in leather goods, which the company acknowledged had “not always aligned with our category authority.”
In its new plan for turnaround, Burberry aims to concentrate on its core competencies, such as its well-known outerwear and scarves, while recalibrating pricing, particularly for leather goods, to better reflect its category leadership.
Schulman stated: “Now, we have a clear framework to reignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry’s best days are ahead.”
Despite these challenging results, Schulman, who took on the role in July, is optimistic that the new strategy will set the brand on a path to recovery.
He remarked: “My first few months have reaffirmed my belief that Burberry is an extraordinary luxury brand, quintessentially British, combining heritage and innovation.”
“Burberry’s original mission to create clothing that protects against the elements is more pertinent than ever. Our recent struggles have arisen from multiple factors, including inconsistent brand execution and a diminished focus on our key outerwear category and core customer segments.”
“Today, we are taking prompt action to correct course, stabilize the business, and position Burberry for a return to sustainable, profitable growth.”
“We possess a strong brand with wide appeal among luxury consumers, authority in the outerwear and scarf markets, which have remained resilient during this period, and a solid presence in all essential luxury markets.”
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