By
Reuters

Published
July 14, 2025

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.

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.”

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