Burberry Betting Big on America: Can Schulman Restore its Luxury Luster?

Burberry is focusing on the U.S. market under new CEO Joshua Schulman to regain lost market share. The brand sees potential in iconic products like trench coats, aiming for increased visibility and a return to 3 billion pounds in annual revenue. Success hinges on improving U.S. consumer perception.

Burberry's investors are eager for positive signs as the British luxury brand prepares to report holiday sales this Friday. With CEO Joshua Schulman at the helm for six months, eyes are on his strategy to revive the brand and reclaim market share by emphasizing iconic items like trench coats.

Schulman, who has seen Burberry's shares rise over 70% since September lows, is focusing on boosting the brand's U.S. presence. Analysts predict a 12% decline in Q4 sales, but anticipate improvement from previous quarters. Concentrating on America could be Burberry's key leverage in the luxury market.

However, Burberry is not alone in aiming for affluent U.S. consumers amid tax cuts and stock market gains. Schulman's strategy includes advertising campaigns that spotlight the brand's heritage pieces, aligning with a broader return to fundamental values while targeting future growth amidst rising competition.

(With inputs from agencies.)