On the day of the publication of still mediocre half-year results, Joshua Schulman, Burberry’s new CEO, unveiled his plan to turn around the fortunes of the British House. At the heart of the plan is a focus on historic products, outerwear and scarves, and a more appropriate pricing policy.
Refocusing on strengths and heritage…
After distancing itself from its DNA and its clientele, with less authentic fashion proposals and excessive price hikes, Burberry is making its mea culpa.
With half-year results still mediocre, the venerable British fashion house and its new CEO since last July, Joshua Schulman, have announced an emergency strategic plan to turn things around. Called “ Burberry Forward ‘, it aims to ’ rekindle interest in the brand, improve” its “performance and drive long-term value creation”.
It has to be said that times are tough and that, by all accounts,Burberry’s poor results since last year can only be partly explained by the poor economic climate, particularly on the Chinese market.
Burberry was once described by a British journalist as “the sick man of European luxury, along with, to a lesser extent, Kering”.
Our recent underperformance is due to a number of factors, including inconsistent brand execution and a lack of focus on our core outerwear category and customer segments,” said Joshua Schulman. Today, we are acting urgently to rectify this, stabilize the business and position Burberry to return to sustainable, profitable growth.”
A mediocre first half of 2024
In terms of figures, after a disappointing 2023 (with sales down 4% and, above all, a 36% drop in profits), the situation is far from having recovered in the first half of the year.
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Featured Photos: © Burberry
