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The Star
18-07-2025
- Business
- The Star
Can a fresh spin on its heritage put Burberry back in fashion's front row?
A year after Josh Schulman became Burberry's CEO with a mandate to turn the British luxury brand around, investors say they're pleased with early signs of recovery even though sales are still falling. Burberry, known for its trademark trench coats and check pattern scarves, is in the early stages of a reboot as Schulman tries to reverse the group's years of underperformance and return sales and profit to growth. Analysts expect the group to report on Friday (July 18) that comparable retail sales fell 3% in the April-June quarter from a year earlier, according to a consensus provided by Burberry. That would mark an improvement from a 6% fall in the January-March period. Burberry issued a string of profit warnings under previous CEO Jonathan Akeroyd, and Schulman after taking over said the brand had lost its focus on outerwear and recognisable British references, and had strayed too far into a "niche aesthetic". Its shares are up around 63% since Schulman took the helm, outperforming luxury peers, and analysts have grown more upbeat in recent weeks, with HSBC saying Burberry has the opportunity to gain market share from rivals. "We are seeing the improvement in terms of the product range, pricing, marketing, and there are early signs that is leading to a pickup in sales – but it's early days still," said Dan Carter, a member of the investment team at Phoenix Asset Management Partners in London. Burberry's marketing under Schulman has drawn on its association with British heritage, but in a way that is also contemporary, Carter added. Burberry typically makes more of its revenue in the Autumn/Winter season. However, it has been trying to tap into key events of the British summertime, with its most recent "Burberry Festival" campaign timed to coincide with Glastonbury music festival. Read more: Get your fete style on for upcoming music events with the latest trends The campaign featured hip-hop artiste Loyle Carner and music producer Goldie, as well as model Cara Delevingne sitting in a pit of mud in Burberry rain boots, in a nod to Glastonbury's unpredictable weather. "They're a brand that is focusing on outerwear and protection against the weather... so to try and stretch that through the year makes sense," said Carter. As part of its turnaround, Burberry announced in May it would cut a fifth of its global workforce, a radical cost-cutting move that investors have welcomed. Less expensive bags, more high-end trenches The brand has moved away from high-priced bags and brought in more affordable models like its recently launched Cotswold range, priced at £1,490 to £1,890 (approximately RM8,549 to RM10,844), and the £850 (RM4,877) Horseshoe crossbody bag – driving its average bag price down by 9% since the start of October last year, according to pricing analysis by Luxurynsight. "They're kind of trying to thread the needle of being luxury while shifting the assortment down a little bit," said Brett Sharoni, senior analyst at Pzena Investment Management in New York, which owns shares in Burberry. "We had been engaging with Burberry for over a year before we ended up buying – and one of our big pieces of feedback to them was, you know, you don't really have a right to sell handbags for US$3,000 (RM12,764)," he said. Read more: Now that Burberry has a new CEO, how will it affect the fashion brand? Burberry has, though, brought in some higher-priced outerwear products such as a ¥115,000 (RM68,268) corduroy trench coat in China, Luxurynsight found, and has broadened its range of outerwear products by 22% since the start of October last year. Yumi Shin, chief merchandising officer at New York department store Bergdorf Goodman, said she supports the emphasis on the brand's trademark products, like the classic trench coat and winter accessories. "We're continuing to feel optimistic about Burberry's transformation under Josh's leadership," said Shin. "Josh has a merchant's mindset and understands the necessity to balance fashion and function on the shop floor." – Reuters
Fashion Network
14-07-2025
- Business
- Fashion Network
Burberry investors welcome early signs of recovery under Josh Schulman
A year after Josh Schulman became Burberry 's CEO with a mandate to turn the British luxury brand around, investors say they're pleased with early signs of recovery — even though sales are still falling. Burberry, known for its trademark trench coats and check pattern scarves, is in the early stages of a reboot as Schulman works to reverse years of underperformance and return both sales and profit to growth. Analysts expect the group to report on Friday that comparable retail sales fell 3% in the April–June quarter from a year earlier, according to a consensus provided by Burberry. That would mark an improvement from a 6% fall in the January–March period. Burberry issued a string of profit warnings under former CEO Jonathan Akeroyd. After taking over, Schulman said the brand had lost focus on outerwear and recognizable British references, veering too far into a 'niche aesthetic.' Its shares are up around 63% since Schulman took the helm, outperforming luxury peers. Analysts have grown more optimistic in recent weeks, with HSBC stating Burberry has the opportunity to gain market share from rivals. 'We are seeing the improvement in terms of the product range, pricing, marketing, and there are early signs that are leading to a pickup in sales — but it's early days still,' said Dan Carter, a member of the investment team at Phoenix Asset Management Partners in London. Burberry's marketing under Schulman has drawn on its association with British heritage, but with a more contemporary lens, Carter added. Burberry typically generates more of its revenue in the autumn/winter season. However, it has been aiming to tap into major British summer events, with its recent 'Burberry Festival' campaign timed to coincide with the Glastonbury music festival. The campaign featured hip-hop artist Loyle Carner and music producer Goldie, alongside model Cara Delevingne sitting in a pit of mud in Burberry rain boots — a nod to Glastonbury's unpredictable weather. 'They're a brand that is focusing on outerwear and protection against the weather... so to try and stretch that through the year makes sense,' said Carter. As part of its turnaround strategy, Burberry announced in May that it would cut 20% of its global workforce — a bold cost-cutting move welcomed by investors. Less expensive bags, more high-end trenches The brand has shifted away from ultra-high-priced bags and introduced more accessible models such as its recently launched Cotswold range, priced between 1,490 pounds and 1,890 pounds ($2,012.99 to $2,553.39), and the 850-pound Horseshoe crossbody bag — driving its average bag price down by 9% since October last year, according to pricing analysis by Luxurynsight. 'They're kind of trying to thread the needle of being luxury while shifting the assortment down a little bit,' said Brett Sharoni, senior analyst at Pzena Investment Management in New York, which owns shares in Burberry. 'We had been engaging with Burberry for over a year before we ended up buying — and one of our big pieces of feedback to them was, you know, you don't really have a right to sell handbags for $3,000,' he said. However, Burberry has introduced some higher-priced outerwear products, including a 115,000-yuan ($16,044.65) corduroy trench coat in China, Luxurynsight reported. It has also broadened its outerwear range by 22% since October last year. Yumi Shin, chief merchandising officer at New York department store Bergdorf Goodman, said she supports the renewed emphasis on Burberry's trademark items, including its classic trench coats and winter accessories. 'We're continuing to feel optimistic about Burberry's transformation under Josh's leadership,' said Shin. 'Josh has a merchant's mindset and understands the necessity to balance fashion and function on the shop floor.' ($1 = 0.7402 pounds) ($1 = 7.1675 Chinese yuan renminbi)
Fashion Network
14-07-2025
- Business
- Fashion Network
Burberry investors welcome early signs of recovery under Josh Schulman
A year after Josh Schulman became Burberry 's CEO with a mandate to turn the British luxury brand around, investors say they're pleased with early signs of recovery — even though sales are still falling. Burberry, known for its trademark trench coats and check pattern scarves, is in the early stages of a reboot as Schulman works to reverse years of underperformance and return both sales and profit to growth. Analysts expect the group to report on Friday that comparable retail sales fell 3% in the April–June quarter from a year earlier, according to a consensus provided by Burberry. That would mark an improvement from a 6% fall in the January–March period. Burberry issued a string of profit warnings under former CEO Jonathan Akeroyd. After taking over, Schulman said the brand had lost focus on outerwear and recognizable British references, veering too far into a 'niche aesthetic.' Its shares are up around 63% since Schulman took the helm, outperforming luxury peers. Analysts have grown more optimistic in recent weeks, with HSBC stating Burberry has the opportunity to gain market share from rivals. 'We are seeing the improvement in terms of the product range, pricing, marketing, and there are early signs that are leading to a pickup in sales — but it's early days still,' said Dan Carter, a member of the investment team at Phoenix Asset Management Partners in London. Burberry's marketing under Schulman has drawn on its association with British heritage, but with a more contemporary lens, Carter added. Burberry typically generates more of its revenue in the autumn/winter season. However, it has been aiming to tap into major British summer events, with its recent 'Burberry Festival' campaign timed to coincide with the Glastonbury music festival. The campaign featured hip-hop artist Loyle Carner and music producer Goldie, alongside model Cara Delevingne sitting in a pit of mud in Burberry rain boots — a nod to Glastonbury's unpredictable weather. 'They're a brand that is focusing on outerwear and protection against the weather... so to try and stretch that through the year makes sense,' said Carter. As part of its turnaround strategy, Burberry announced in May that it would cut 20% of its global workforce — a bold cost-cutting move welcomed by investors. Less expensive bags, more high-end trenches The brand has shifted away from ultra-high-priced bags and introduced more accessible models such as its recently launched Cotswold range, priced between 1,490 pounds and 1,890 pounds ($2,012.99 to $2,553.39), and the 850-pound Horseshoe crossbody bag — driving its average bag price down by 9% since October last year, according to pricing analysis by Luxurynsight. 'They're kind of trying to thread the needle of being luxury while shifting the assortment down a little bit,' said Brett Sharoni, senior analyst at Pzena Investment Management in New York, which owns shares in Burberry. 'We had been engaging with Burberry for over a year before we ended up buying — and one of our big pieces of feedback to them was, you know, you don't really have a right to sell handbags for $3,000,' he said. However, Burberry has introduced some higher-priced outerwear products, including a 115,000-yuan ($16,044.65) corduroy trench coat in China, Luxurynsight reported. It has also broadened its outerwear range by 22% since October last year. Yumi Shin, chief merchandising officer at New York department store Bergdorf Goodman, said she supports the renewed emphasis on Burberry's trademark items, including its classic trench coats and winter accessories. 'We're continuing to feel optimistic about Burberry's transformation under Josh's leadership,' said Shin. 'Josh has a merchant's mindset and understands the necessity to balance fashion and function on the shop floor.' ($1 = 0.7402 pounds) ($1 = 7.1675 Chinese yuan renminbi)
Fashion Network
14-07-2025
- Business
- Fashion Network
Burberry investors welcome early signs of recovery under Josh Schulman
A year after Josh Schulman became Burberry 's CEO with a mandate to turn the British luxury brand around, investors say they're pleased with early signs of recovery — even though sales are still falling. Burberry, known for its trademark trench coats and check pattern scarves, is in the early stages of a reboot as Schulman works to reverse years of underperformance and return both sales and profit to growth. Analysts expect the group to report on Friday that comparable retail sales fell 3% in the April–June quarter from a year earlier, according to a consensus provided by Burberry. That would mark an improvement from a 6% fall in the January–March period. Burberry issued a string of profit warnings under former CEO Jonathan Akeroyd. After taking over, Schulman said the brand had lost focus on outerwear and recognizable British references, veering too far into a 'niche aesthetic.' Its shares are up around 63% since Schulman took the helm, outperforming luxury peers. Analysts have grown more optimistic in recent weeks, with HSBC stating Burberry has the opportunity to gain market share from rivals. 'We are seeing the improvement in terms of the product range, pricing, marketing, and there are early signs that are leading to a pickup in sales — but it's early days still,' said Dan Carter, a member of the investment team at Phoenix Asset Management Partners in London. Burberry's marketing under Schulman has drawn on its association with British heritage, but with a more contemporary lens, Carter added. Burberry typically generates more of its revenue in the autumn/winter season. However, it has been aiming to tap into major British summer events, with its recent 'Burberry Festival' campaign timed to coincide with the Glastonbury music festival. The campaign featured hip-hop artist Loyle Carner and music producer Goldie, alongside model Cara Delevingne sitting in a pit of mud in Burberry rain boots — a nod to Glastonbury's unpredictable weather. 'They're a brand that is focusing on outerwear and protection against the weather... so to try and stretch that through the year makes sense,' said Carter. As part of its turnaround strategy, Burberry announced in May that it would cut 20% of its global workforce — a bold cost-cutting move welcomed by investors. Less expensive bags, more high-end trenches The brand has shifted away from ultra-high-priced bags and introduced more accessible models such as its recently launched Cotswold range, priced between 1,490 pounds and 1,890 pounds ($2,012.99 to $2,553.39), and the 850-pound Horseshoe crossbody bag — driving its average bag price down by 9% since October last year, according to pricing analysis by Luxurynsight. 'They're kind of trying to thread the needle of being luxury while shifting the assortment down a little bit,' said Brett Sharoni, senior analyst at Pzena Investment Management in New York, which owns shares in Burberry. 'We had been engaging with Burberry for over a year before we ended up buying — and one of our big pieces of feedback to them was, you know, you don't really have a right to sell handbags for $3,000,' he said. However, Burberry has introduced some higher-priced outerwear products, including a 115,000-yuan ($16,044.65) corduroy trench coat in China, Luxurynsight reported. It has also broadened its outerwear range by 22% since October last year. Yumi Shin, chief merchandising officer at New York department store Bergdorf Goodman, said she supports the renewed emphasis on Burberry's trademark items, including its classic trench coats and winter accessories. 'We're continuing to feel optimistic about Burberry's transformation under Josh's leadership,' said Shin. 'Josh has a merchant's mindset and understands the necessity to balance fashion and function on the shop floor.' ($1 = 0.7402 pounds) ($1 = 7.1675 Chinese yuan renminbi)
