Burberry's Revamp: The Return to Core Classics

Burberry aims to return to its roots, focusing on trench coats and scarves while reducing prices for bags and shoes. The struggling luxury brand, led by new CEO Joshua Schulman, reported losses in the first half of the year and announced a cost savings plan.

Burberry is set to realign with its classic appeal, spotlighting iconic trench coats and scarves while moderating prices for bags and shoes. According to a strategy update on Thursday, the luxury brand, battling underperformance, will harness its British heritage to win back its customer base.

Under the leadership of CEO Joshua Schulman, Burberry introduced a cost-saving strategy worth 40 million pounds. Schulman, Burberry's fourth CEO in ten years, intends to stabilize and reposition the brand for sustainable growth after a challenging first half resulting in financial losses.

Sales figures dwindled, with revenue plummeting by 20% in constant currencies in the first half, while Asian and American markets experienced even steeper declines. Despite speculation about a potential takeover by Italy's Moncler, no official negotiations are confirmed.

(With inputs from agencies.)