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Mint
a day ago
- Entertainment
- Mint
Burberry got too fancy. This American is taking it back to its British roots.
Soon after taking over as Burberry's chief executive last summer, Joshua Schulman popped into the company's Fifth Avenue store in Manhattan. The shop floor was cavernous, minimalist and showcased select $3,000 handbags. What he didn't see were any $500 umbrellas—the type of higher-volume accessory that, along with trench coats, made Burberry an icon of functional, aspirational luxury for well over a century. As an American who had long admired the British brand, Schulman was puzzled. 'I'm like, why don't we have hats or umbrellas on the floor?" he recalled. A store employee told him that went against the company's visual guidelines, which called for sparse setups and no mannequins, another thing that struck Schulman as odd given that Burberry sells a full wardrobe. 'I said, 'Well, why don't we try?'" Employees quickly retrieved some from the stockroom and propped them up prominently. As luck would have it, a rainstorm soon blew through, and several shoppers bought umbrellas with Burberry's signature check pattern within the hour. One year in as Burberry CEO, Schulman is taking a back-to-basics approach to reviving the cachet of a company that once helped define British culture around the world. He is unwinding some of the brand's overly ambitious detours and refocusing on what built Burberry's name: classic British style and clothing designed to withstand the elements. A new ad campaign proclaims 'It's Always Burberry Weather" and features Olivia Colman, who played Queen Elizabeth II on 'The Crown," in a quilted jacket and Liam Gallagher of Oasis in a parka ahead of the '90s British rock band's reunion tour. 'Some of this is about slicing and dicing the numbers and looking at deep analysis," says the 53-year-old in an interview in his office at Burberry's London headquarters near the Thames. 'And some of it is just leaning into the assets that we have already and celebrating who we are." Since its founding in 1856 and Thomas Burberry's invention of weatherproofed gabardine fabric designed to withstand the British climate, Burberry has outfitted polar explorers, soldiers and royalty. A young Princess Diana was frequently photographed in her Burberry trench, establishing the coat as a symbol of understated aristocratic style. By the late 1980s, it was becoming the uniform of London's club kids and fashion outsiders. The shift diluted its luxury image; it was too everywhere. In the 2000s, the brand mounted a comeback, running ads with the likes of Kate Moss and aristocratic model Stella Tennant that blended heritage with edge. Burberry's Bond Street store in London in 2023 shows how the retailer then favored a minimalist aesthetic with no Schulman joined as CEO, Burberry is featuring more traditional patterns and full wardrobe looks on mannequins, as seen in its Regent Street store in London in June. In recent years, a series of CEOs and designers tried to catapult Burberry into the top tier of the fashion world with avant-garde runway looks and bags at prices that rivaled Louis Vuitton. The timing couldn't have been worse. As Burberry tried to push upmarket, the luxury industry turned. Consumers cut back amid economic uncertainty and balked at prices that had soared during the pandemic boom in demand. Sales were hit especially hard in China, the world's largest luxury market. Burberry was caught in an identity crisis. The brand, Schulman believes, had lost focus, pursuing a niche aesthetic at the expense of its more universal luxury appeal. And because Burberry is the U.K.'s only global luxury brand—as well as the marquee name at London Fashion Week—its missteps have wider implications for British fashion as a whole. 'When it falters, it exposes how heavily the system depends on a single brand to lead," said Andrew Groves, a professor of fashion design at the University of Westminster. Princess Diana, with Prince Charles on tour in Nova Scotia in 1983, made the Burberry trench a symbol of understated aristocratic style. Other fashion rivals are privately owned (Chanel) or part of sprawling conglomerates (Gucci or Dior), but Burberry is on its own as a company and publicly traded. That puts more pressure on Schulman to turn things around, despite the weaker luxury market, and fast. In May, Burberry announced a second annual decline in sales and a net loss for the fiscal year ended in March. Burberry's share price is down more than 50% since early 2023. Schulman moved quickly to overhaul the executive team and announced plans to cut roughly 1,700 jobs by 2027—nearly 20% of its global head count. The oldest of six children, Schulman grew up in Los Angeles. As a boy, he had his nose in Women's Wear Daily, known in the industry as the 'fashion bible," and corporate annual reports. He would memorize the layouts and square footage of major department stores from company filings. 'I was a very strange child," he admits with a laugh. When Nordstrom announced it would open a store nearby in West Los Angeles, Schulman, then around 13 years old, wrote to one of the company's leaders to say he was 'ecstatic." The executive wrote back, and he's kept the letter ever since. Around the same time, Schulman got his first job at a children's clothing boutique in Beverly Hills. Kris Kardashian came in to shop for her young children. So did Kathy Hilton, for her daughter Paris. Schulman knew the regulars by name and paid close attention to their tastes. He joined the owner on buying trips, bringing back Versace and Moschino for kids. 'A lot of what I learned was in those four walls," he says. He was convinced he'd rocket straight to being CEO of Bloomingdale's. After college at New York University and then Parsons School of Design, Schulman landed his first job in fashion at Perry Ellis, an American menswear brand known for its dress shirts and slacks. The company was in turmoil. It had just parted ways with Tom Ford—who would soon reinvent Gucci—and brought in Marc Jacobs, whose now-legendary Grunge collection also got him fired. Schulman quickly learned the risks of misalignment between creative vision and corporate leadership. A few years later, in 1997, he joined Gucci. There, Schulman was responsible for the commercial side of the ready-to-wear business, working closely with Christopher Bailey, who was head of women's design. Bailey later jumped to Burberry. Schulman kept a close eye on Burberry as Bailey led a revival of the brand, and Schulman's interest deepened when he relocated to London to run Jimmy Choo from 2007 to 2012. 'Burberry was like the shining city on a hill," he said. A succession of CEOs—five since the turn of the century—have tried to push Burberry higher up the luxury ladder, with some experimenting with less traditional styles like an urban, sports-luxe aesthetic. Schulman at a Jimmy Choo event in 2009, when he was CEO of the luxury footwear label. Burberry built out a network of global flagships and tightened control over its image. It gave up profits from high-volume licensing deals in Spain and Japan, pulled back from discount-friendly department stores in the U.S., and stripped out promotions from full-price boutiques. The push accelerated during the pandemic. In late 2022, the company hired designer Daniel Lee and leaned hard into expensive handbags. Burberry increased prices on leather goods by 60%. 'It's been a mistake for them to raise prices like they did and to try to carve out a whole new lane for themselves," says Pete Nordstrom, president of the Seattle-based Nordstrom department store, one of Burberry's most important wholesale partners in the U.S. 'That's going to have a negative impact with customers—and it has." Meanwhile, Schulman was on a fast track through some of America's biggest fashion names, including Coach and Michael Kors. Schulman was in talks to bring more fashion know-how to Burberry as a potential board member in spring 2024, just as Burberry's strategy was unraveling. The company had issued a profit warning and seen its share price tumble. Shareholders were losing patience. Instead of a board seat, Schulman was named CEO. On his first day, he stood before staff at Burberry's London headquarters and delivered a blunt diagnosis: The brand had drifted too far into niche fashion. It needed to capitalize more on its roots—trench coats, scarves, the classic red, white, black and tan checks. Within weeks, Schulman convened a 200-person session of designers, merchandisers, product developers and marketers. Burberry had narrowed its appeal too drastically, he told them, focusing on the 'opinionated customer" while neglecting others who he called investors, aspirers, hedonists and conservatives. Burberry scarves are no longer tucked away in drawers. Prominent 'scarf bars' allow shoppers to pick among an array of patterns and colors of cashmere scarves, with on-the-spot monogramming. 'We had left behind the broader universe of luxury customers," he says. One symbolic casualty of that shift was the classic Burberry polo, historically with an embroidered equestrian knight or checked trims. 'We had replaced that with a more anonymous polo shirt…at a much higher price point," Schulman said. 'Our customer didn't respond to that." Pricing has been recalibrated: Schulman is charging a premium where the brand has authority—particularly outerwear and trench coats, which can run upward of $3,400—while pulling back in categories like handbags, where Burberry's credentials are weaker. He is also highlighting globally recognizable symbols of Britishness—but with a sharper eye on how they would resonate internationally with, say, an American like himself. Internal data revealed a recurring problem under the previous leadership: Campaigns aimed at showcasing Burberry's 'modern British luxury" aesthetic struck a chord in the U.K., but often failed to resonate as strongly abroad. In the fall, Schulman unveiled an ad campaign tied to the reopening of Burberry's New York flagship that featured British model and actress Cara Delevingne in front of London's iconic Big Ben. 'It may not be the most subtle reference, but it's globally recognizable," Schulman said. 'You can see the Eiffel Tower in ads for three or four of our French competitors all the time." Nowhere is Schulman's shift more visible than in how Burberry displays scarves, once tucked away in drawers. New 'scarf bars" prominently showcase cashmere scarves in an array of patterns and colors that can be monogrammed on the spot. Investors are optimistic. Same-store sales fell 5% in the six months to March 29—an improvement from the 20% drop in the previous half. Burberry's share price is up about 30% this year. At a showroom in Paris shortly after Schulman joined Burberry, Nordstrom says his buyers and merchandisers were ready to lay out everything that wasn't working. Before they could start, Schulman cut in: 'You don't need to tell me. I know. We'll fix it." Schulman and his team are eager to work collaboratively, says Nordstrom. 'Their time to shine is really the second half of the year, especially fall and winter. I think we'll know a lot more then." With its recent focus on more accessibly priced products, some warn the brand risks drifting into 'affordable luxury" territory—a profitable but less rarefied space, closer to Coach. Two former Burberry executives contend that the shift to the higher end would have worked if given enough time, or if the broader environment hadn't changed so dramatically. 'It takes years to elevate a brand," said one. 'Burberry started that process, but it's very hard to achieve when you're a publicly listed company. Shareholders want results." Schulman insists he has no intention of turning Burberry into a 'British Coach," emphasizing that the ambition remains firmly rooted in full luxury positioning. First, however, he needs to lure more customers with the kind of classic coats and scarves that made Burberry famous. 'We could be among those top five luxury brands in the far future," he says. 'That is the North Star for this business." Write to Nick Kostov at
Miami Herald
16-05-2025
- Business
- Miami Herald
Iconic luxury brand plans major layoffs in desperate reset
After chasing trends, this iconic label is retreating to its roots. A legendary fashion label - once synonymous with cool, effortless elegance - is now taking a wrecking ball to its most recent playbook. Related: Luxury fashion group reeling after disastrous quarter For years, this brand chased relevance through hype drops, high-concept runway shows, and price tags that pushed even loyal shoppers away - a full-on identity crisis that left it drifting from what made it great. Don't miss the move: Subscribe to TheStreet's free daily newsletter Now it's in full reset mode. That means slashing 1,700 jobs, killing a factory night shift, and squeezing every ounce of excess from its business. It's a risky, high-stakes return to what made the brand famous, and failure isn't an option. Burberry (BURBY) announced it will eliminate about 20% of its global workforce over the next two years. That includes corporate roles, retail staff, and the entire night shift at its Castleford trench coat factory - a move it says will help rein in overproduction. This is part of a broader restructuring blitz aimed at saving £60 million, in addition to the £24 million already shaved from costs in the second half of FY25. Behind the cuts lies a year of painful numbers. Sales fell 15% at constant exchange rates, and adjusted operating profits plunged by 88%. Related: Luxury designer brand flags shift in customer behavior CEO Joshua Schulman, who joined last July, is pushing a return to form under his "Burberry Forward" strategy. The company plans to trim the fat, lean into trench coats and scarves, and stop chasing the fashion crowd - a clear return to the heritage that built the brand. "With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns," Schulman said. "We have the most opportunity where we have the most authenticity." Burberry is doubling down on what made it iconic: Britishness, outerwear, and weather-proof luxury. The brand's "It's Always Burberry Weather" and "Wrapped in Burberry" campaigns helped drive better-than-expected retail orders and a bounce in customer engagement. A scarf bar pilot and new digital styling tools are already live. Schulman's bet? That a cleaner, tighter, and more focused Burberry can claw its way back. Despite the slump, some analysts are turning bullish. Citi and Deutsche Bank rated the stock a "buy," betting that tight cost control and Schulman's refocus will pay off. Jefferies, however, called it a "slow burn" and warned the brand still has much to prove. Only time will tell. Clearly, Burberry isn't just trimming the edges. It's cutting to the core, betting that what it does best is still enough to win. And this time, it can't afford to miss. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Fibre2Fashion
14-05-2025
- Business
- Fibre2Fashion
British brand Burberry's global revamp may put 1,700 jobs in jeopardy
UK luxury fashion brand Burberry may cut around 1,700 jobs globally as part of its Burberry Forward plan aimed at boosting profitability, agility and efficiency. The organisational changes, focused on streamlining operations, procurement, and real estate, are expected to deliver £100 million (~$125 million) in annual savings by FY27, including £60 million in new savings, while enhancing customer focus. Meanwhile, the company, in its preliminary result for full fiscal year 2025 (FY25) ended March 29, reported a revenue decline of 17 per cent year-over-year (YoY) to £2.5 billion (~$3.1 billion), and 15 per cent at constant exchange rates (CER). The overall retail comparable sales were down 12 per cent, improving from a 20 per cent YoY decline in the first half (H1) to a 5 per cent drop in the second half (H2). The adjusted operating profit stood at £26 million, driven by a £67 million profit in H2 that offset a £41 million loss in H1. UK luxury brand Burberry may cut around 1,700 roles globally under its Burberry Forward plan, aimed at boosting profitability, agility, and efficiency. The strategy targets £100 million (~$125 million) in annual savings by FY27. In FY25, revenue fell 17 per cent to £2.5 billion (~$3.1 billion), but H2 sales improved following brand repositioning, product focus, and visual upgrades. However, the reported operating result showed a £3 million loss, impacted by £29 million in adjusting items. Gross margin fell to 62.5 per cent, down 470 basis points (bps) at CER and 520 bps at reported rates. Adjusted net operating expenses were reduced by 3 per cent at CER and 5 per cent at reported rates. Following a challenging H1 FY25, the company launched its strategic plan, Burberry Forward, in November, focusing on resetting brand storytelling, enhancing visual merchandising both in-store and online, and aligning product emphasis with core categories. These actions led to a notable improvement in comparable retail sales in the second half, reinforcing confidence in the company's strategic direction, Burberry said in its preliminary financial results. Key actions taken in H2 FY25 included reasserting Burberry's identity as a timeless British luxury brand through comprehensive campaigns like 'It's Always Burberry Weather' and 'Wrapped in Burberry', and presenting the Winter 2025 runway show at Tate Britain. The company has announced that it refined its product range with more focused, larger-scale offerings and pricing adjustments. Visual merchandising was enhanced with improved product displays and a pilot scarf bar concept. Online styling was updated, and digital innovations were introduced to boost engagement and appeal. For FY26, Burberry acknowledges that it remains in the early stages of its turnaround, with the current macroeconomic environment becoming increasingly uncertain due to geopolitical developments. Fibre2Fashion News Desk (SG)
Business of Fashion
11-05-2025
- Business
- Business of Fashion
This Week: Is Burberry's Turnaround a Go?
What's Happening: Burberry reports first quarter results on May 14. The average analyst forecast is for same-store sales to fall by 7 percent. Rebound Blocked: For the quarter ending in December, Burberry reported a smaller-than-expected 4 percent decline in sales, which was good enough to send shares soaring. Unfortunately, the good news, such as it was, stemmed from a strong showing in the US. We all know what happened next. Turning a Corner: Last week, Citi's Thomas Chauvet published a 'buy' recommendation for Burberry's stock for the first time since 2008. He's still in the minority, with just six out of 20 analysts covering the company having a positive rating. The case for optimism comes down to Burberry finally acknowledging last year, after nearly a decade of trying, that it isn't destined to be a trendsetting European luxury brand, or to produce the next 'it' bag. Putting the Pieces in Place: Chief executive Joshua Schulman, whose past executive experience includes stints at accessible luxury giants Coach and Michael Kors, laid out his 'Burberry Forward' plan last year. It includes cost cuts, lowering average retail prices and focussing on core categories, complete with an 'It's Always Burberry Weather' campaign. Just as importantly, creative director Daniel Lee is following the same script, with his last collections leaning more into Burberry's British outerwear heritage with its weekend in the country theme. Burberry is also reportedly looking to replace chairman Gerry Murphy, who has been in that role since 2018. Still a Risky Bet: While there are some promising early signs (and the US-UK trade deal announced Thursday certainly helps), Burberry optimists are still leaning on the idea that things can't get much worse than they already have. They may be right. But between the tariffs and the worsening luxury downturn, we've learned the hard way this year that there's always further to fall. This Week's Tariff Indicators What's Happening: A pair of key US economic indicators drop this week, with April's consumer price index – aka inflation – out on Tuesday, followed by retail sales on Thursday. No Recession Here: Inflation came in below the average forecast in March, while retail sales unexpectedly surged as consumers stocked up ahead of Trump's tariff announcement. For April, economists predict consumer prices to rise 2.4 percent from a year earlier, and non-auto retail sales to tick up 0.5 percent. While some retailers have raised prices, it's May onward when we'll likely see the full impact of tariffs. Luxury Indicators: If you prefer to get your economic readings in a more glamorous fashion, check out Mytheresa's – or rather, LuxExperience's – earnings on May 14, to see if the stock market's dismal start to the year temporarily put the e-tailer's wealthy clientele off shopping. The Week Ahead wants to hear from you! Send tips, suggestions, complaints and compliments to
The Independent
24-02-2025
- Entertainment
- The Independent
Naomi Campbell, Richard E. Grant, Lila Moss and more hit the Burberry runway
Burberry presented a star-studded runway as it closed London Fashion Week, showcasing the best of British from the world of fashion and acting. Supermodel Naomi Campbell, 54, wore a plum jacquard double collared trench with a layered fringing skirt and black thigh high boots. Kate Moss's daughter Lila, 22, joined her mum's close friend on the catwalk, wearing a retro orange and brown floral print co-ord and knee high boots. Actor Richard E. Grant, 67, stepped out in a charcoal wool double-breasted trench, high-collared knit and black leather gloves, while carrying a canary yellow Burberry checked umbrella. Actors Lesley Manville, 68, and Jason Isaacs, 61, who both recently starred in Mrs Harris Goes To Paris, showcased Burberry's outerwear in black and grey. This year, creative director Daniel Lee, who joined in 2022 after leaving Bottega Veneta, showcased the best of British seasonal wear through moleskin trenches, double-breasted wool overcoats and cosy blanket scarves. Like many designers this season, Lee looked to the 1980s for inspiration, flooding the runway with preppy neck scarves, thigh high riding boots and blouson bombers. Burberry is known for it's iconic outerwear, following it's recent campaign, 'It's Always Burberry Weather', this autumn/winter collection was highly anticipated. Luckily, Lee's outerwear was both diverse and consistent, with trenches, wool overcoats, leather biker jackets and velvet blazers seamlessly gracing the runway. Leather parkas, faux fur trims, jodhpurs and heavy-weight checked kilts brought a rugged sense of the countryside to the night; steering away from the chic, and 'demure', country-core we've seen from other designers. Lee's evening looks featured romantic fluted sleeves and frilled collars, heavy duty jacquard velvet and liquid leather accessories. The collection consisted of an English autumn palette, with rich berries, olive greens, chocolates and charcoals – alongside bursts of crimson, ochre and ultramarine cropping up throughout the eveningwear. Held at the Tate Britain in London, located just a few steps away from the newly renovated Burberry HQ, the venue was perfect for Lee's ode to Britain. It wasn't just the catwalk that featured British A-Listers, the audience was equally studded with stars, with the likes of Geri Horner, Damon Albarn, Steve Coogan and Brooklyn Beckham gracing the front row. Doctor Who's Ncuti Gatwa, 32, wore a Noughties style leather jacket with zip-pleated trousers and a collared polo. Blur frontman Albarn, 56, appeared with his daughter Missy, 25, in oversized tailored trousers and casual overshirts. Former Spice Girl Horner, 52, wore a classic cream Burberry trench and checked shoulder bag. Beckham and his wife Nicola Peltz brought quintessentially British street style to the show. The 25-year-old wore a Burberry check utility tracksuit with black zip detailing and square toed leather shoes, while Peltz, 30, matched in Burberry check cargo trousers and a black leather biker jacket. Victoria Beckham is set to debut her autumn/winter collection at Paris Fashion Week next month. Coogan, 59, channelled the dapper 1920s in a charcoal single-breasted suit, wool skinny scarf and heritage cream trench. Burberry has remained a highlight in the London Fashion Week calendar, closing the week season after season with a recurring star-studded line-up. This year, all eyes were on Burberry, as the heritage brand announced a turnaround last year, when new CEO Joshua Schulman unveiled 'Burberry Forward'. It was a plan aiming to bring Burberry back to outerwear and a more varied pricing structure – something showcased in it's now iconic campaign that launched last October.
