Core Insights - Burberry is experiencing a significant revenue decline of 22% in its interim results for the six months ending in September, prompting CEO Joshua Schulman to implement an urgent "course correct" strategy to stabilize the brand [1][2][3] Company Strategy - The new strategy, termed "Burberry Forward," aims to address the brand's longstanding issues and position it for sustainable, profitable growth [3] - The company acknowledges that its underperformance is due to "inconsistent brand execution" and a "lack of focus" on its outerwear category and core customers [3] Market Response - Following the announcement of the strategic shift, Burberry's shares rose by 14% in early trading [3] Brand Identity and Pricing Issues - Burberry's attempts to modernize have reportedly come at the expense of its heritage and identity, leading to a pricing strategy that has alienated many consumers [4] - Analysts have noted that high pricing has made Burberry less appealing compared to competitors like Louis Vuitton [4] Leadership Changes and Campaigns - As part of the new strategy, Burberry is appointing new leaders in its marketing and product teams and launching campaigns that emphasize a return to its roots [4] - The "It's Always Burberry Weather" campaign features British and Irish celebrities, including Barry Keoghan and Cara Delevingne [5] Industry Context - The luxury sector is facing an industry-wide slump, particularly due to declining demand in China, with Burberry being one of the hardest-hit brands [5] - The company has previously reported job cuts, a decline in sales, and the suspension of dividend payments to shareholders [6]
Burberry launches urgent turnaround plan to save the brand