Burberry's Heritage Revival: Aiming for Luxury Success

Burberry plans to focus on its iconic trench coats and scarves, revising its pricing strategy after reporting losses. New CEO Joshua Schulman intends to revive the brand's core identity, adding lower-priced items without abandoning its luxury status. Shares surged over 14% amid these new strategies.

Burberry is set to capitalize on its storied British heritage by honing in on its famous trench coats and scarves, while recalibrating its pricing strategy for bags and shoes. The loss-making luxury brand outlined these plans in a revamp that saw its stock jump significantly.

Newly appointed CEO Joshua Schulman revealed his blueprint for Burberry's turnaround on Thursday, following a reported loss in the first half of its fiscal year and the launch of a 40 million pound cost-cutting initiative. The company's shares soared over 14%, marking their largest one-day gain since March 2020.

Struggling alongside other luxury retailers during a global slowdown, Burberry acknowledged veering too far from its core identity, as frequent leadership changes led to brand confusion. Schulman aims to introduce more affordable products while maintaining Burberry's exclusive luxury positioning.

(With inputs from agencies.)