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The Burberry boss yesterday vowed to refocus the brand’s attention on “timeless British luxury” as he outlined plans to revive its fortunes and fend off takeover rumours.
Joshua Schulman, who took over the top job in July, admitted that the brand, 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 company.
It comes amid recent speculation that Burberry, whose share price has fallen by two-thirds since April 2023, could be acquired by Italian skiwear company Moncler.
Turnaround plan: Burberry boss Joshua Schulman, who took the top job in July, admitted the label, best known for its trench coats, had lost its way in recent years.
Schulman, a New Yorker, impressed investors after pledging to emphasize the firm’s outerwear offering, including its signature check-print coats and scarves.
He said the current ‘always make time for Burberry’ marketing campaign, which features British stars such as Oscar winner Olivia Colman drinking tea and enjoying the great British countryside, has already helped improve perception of the brand.
And the group will put less energy into “niche” and “modern” designs, which have been “biased toward a narrow luxury customer base,” Schulman said.
“We are pivoting towards timeless British luxury, juxtaposing heritage and innovation across all our touchpoints into a more recognizable expression of Burberry,” he said.
Its insistence that change is needed was underlined by results which showed a 20 per cent drop in sales for the six months to September 28, while it swung to a pre-tax loss of £80m.
Schulman, who replaced Jonathan Akeroyd, said he was on a mission to “course correct” after poor management of the brand and its core products.
Prices had risen too high for products like handbags, Schulman added, and Burberry would now offer a wider range of prices on iconic outerwear. Their coats currently range from £1,150 to £7,900.
But Schulman insisted the group would maintain its desirable luxury status and was in no rush to reduce prices to become “affordable.”
There have been questions about creative director Daniel Lee’s future at the company.
But Schulman said yesterday that “everyone is focused on the same results and everyone is working very well together.”
Chairman Gerry Murphy has previously said the business “probably went too far, too fast” by raising prices and targeting a super-rich group.
Against a backdrop of hectic acquisition talks, Schulman said owners and customers “see advantages to Burberry being an independent luxury brand” as it makes it stand out from its fashion house rivals.
This will have been reassuring news for those who fear Burberry will be next to exit the London stock market.
Both Moncler and Burberry have declined to comment on the bid rumours.
Schulman, former head of handbag maker Michael Kors, struck an optimistic tone as he announced his ambition for annual sales to reach £3bn, although he gave no target date for this.
AJ Bell investment director Russ Mold warned: “The only thing that is out of Schulman’s control is Chinese consumer sentiment, as the weak context in China is extremely unhelpful for Burberry given its dependence on this market in the recent years.”
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