Under new leadership, Burberry has embarked on an ambitious turnaround plan that is reshaping its operations, product mix and global positioning. Appointed in mid‑2024, CEO Joshua Schulman wasted no time in unveiling “Burberry Forward,” a strategic framework designed to reignite demand, stabilize finances and reclaim the brand’s heritage cachet. Nearly a year into the effort, the impact of these initiatives is visible across Burberry’s financial metrics, marketing campaigns and organizational structure—and has begun to sway both investors and consumers.
Reviving Heritage Through Cost Discipline
A centerpiece of Burberry Forward is a rigorous cost‑cutting drive aimed at preserving margins while freeing up resources for growth‑oriented investments. In May, the company announced the elimination of roughly one‑fifth of its global workforce—about 1,700 positions—primarily in corporate and support functions. This move, which also included closing the night shift at its Castleford trench‑coat factory to curb overproduction, is projected to save some £60 million over two years. By tightening inventory controls, rationalizing office footprints and renegotiating supplier contracts, Burberry has slashed non‑essential spending and redirected capital toward product development and marketing.
The financial payoff has been tangible. For the fiscal year ending March 2025, Burberry reported an adjusted operating profit of £26 million—beating market forecasts—even as revenues dipped 15 percent to £2.46 billion. The second half of the year showed a marked improvement: store sales fell 12 percent for the full year but began to recover sequentially in the final two quarters, underscoring momentum generated by Schulman’s reforms. Investors have taken notice: since Schulman’s appointment, Burberry shares have climbed more than 60 percent, outpacing many of its luxury peers.
Strategic Product and Pricing Reforms
Beyond cost cuts, Burberry has realigned its product assortment to emphasize signature British‑heritage items—most notably trench coats and check‑pattern scarves—while streamlining its leather‑goods range. A former CEO of Jimmy Choo and Michael Kors, Schulman has leveraged his merchant’s mindset to adjust price points where the brand had overreached. High‑ticket handbags priced above £2,500 have given way to mid‑tier leather goods such as the new Cotswold tote, launched at £1,490, and an £850 Horseshoe crossbody bag. This 9 percent reduction in average bag pricing since October has widened Burberry’s addressable market without diluting its luxury positioning.
At the same time, the company has invigorated its high‑end outerwear offering. In China, for instance, Burberry introduced a limited‑edition corduroy trench coat priced at 115,000 yuan—demonstrating that premium priced styles still have appetite among affluent consumers. Overall, the outerwear range has expanded by 22 percent, catering to markets from London’s damp autumns to North America’s winter chills. Seasonal campaigns like “Burberry Festival,” timed to coincide with Glastonbury and featuring cultural icons in branded rain boots, underscore the brand’s dual commitment to heritage and contemporary relevance.
Operational Overhaul and Workforce Restructuring
Schulman’s turnaround goes beyond P\&L improvements to a deeper overhaul of Burberry’s organizational DNA. The leadership team has been reshuffled to bring in fresh talent with e‑commerce, data‑analytics and digital‑marketing expertise. Burberry’s digital sales now account for nearly one‑third of total retail revenue, up from roughly 25 percent a year earlier, driven by investments in website UX, CRM platforms and social‑commerce activations. The brand has also piloted AI‑powered inventory forecasting tools in key markets, reducing out‑of‑stocks and optimizing markdown strategies.
Regional agility has been another focus. Burberry has granted greater autonomy to its Asia‑Pacific team, where the brand’s reputation index reached a record high in mid‑2025, fueled by localized marketing tied to Chinese luxury festivals and influencer collaborations. In Europe and North America, the company is exploring shop‑in‑shop concepts within department stores to lower operating costs and test new store formats before rolling out standalone boutiques.
To support these structural changes, Burberry has reallocated its talent pool, encouraging secondments between headquarters and fast‑growing markets. A new graduate‑and‑internship program has been launched to cultivate digital, sustainability and customer‑experience skillsets, ensuring the company’s pipeline of future leaders aligns with modern luxury demands.
Broader Impacts on Brand Perception and Market Share
The convergence of cost discipline, product realignment and digital acceleration is yielding early signs of brand revitalization. Independent reputation surveys place Burberry’s global score at its highest ever, surpassing many heritage rivals in consumer trust and admiration. Market‑share data indicate that Burberry is clawing back ground in outerwear, its historic stronghold, and gaining traction in accessories.
Analysts from HSBC and other brokerages have upgraded Burberry’s outlook, arguing that the brand can wrest share from peers that rely heavily on volatile jewelry or ultra‑high‑end handbags. Indeed, the company’s newfound focus on the “everyday luxury” segment—balancing aspirational price points with attainable entry levels—has resonated with younger, digitally native shoppers.
Looking ahead, Burberry plans to accelerate its sustainability agenda, aiming for net‑zero emissions across operations and supply chains by 2040. The company is piloting circular‑economy initiatives, such as repair services for trenches and scarves, bolstering both its environmental credentials and customer engagement.
As Burberry approaches its first anniversary under Schulman, the turnaround plan’s multifaceted impact is clear: streamlined costs underpin healthier margins, targeted product and pricing strategies betoken stronger consumer appeal, and an organizational reset equips the brand for the digital era. While challenges remain—particularly in reviving wholesale partnerships and navigating macroeconomic headwinds—the early traction under Burberry Forward suggests that this iconic luxury house may be poised for a durable renaissance on the global stage.
(Source:www.fashionnetwork.com)
Reviving Heritage Through Cost Discipline
A centerpiece of Burberry Forward is a rigorous cost‑cutting drive aimed at preserving margins while freeing up resources for growth‑oriented investments. In May, the company announced the elimination of roughly one‑fifth of its global workforce—about 1,700 positions—primarily in corporate and support functions. This move, which also included closing the night shift at its Castleford trench‑coat factory to curb overproduction, is projected to save some £60 million over two years. By tightening inventory controls, rationalizing office footprints and renegotiating supplier contracts, Burberry has slashed non‑essential spending and redirected capital toward product development and marketing.
The financial payoff has been tangible. For the fiscal year ending March 2025, Burberry reported an adjusted operating profit of £26 million—beating market forecasts—even as revenues dipped 15 percent to £2.46 billion. The second half of the year showed a marked improvement: store sales fell 12 percent for the full year but began to recover sequentially in the final two quarters, underscoring momentum generated by Schulman’s reforms. Investors have taken notice: since Schulman’s appointment, Burberry shares have climbed more than 60 percent, outpacing many of its luxury peers.
Strategic Product and Pricing Reforms
Beyond cost cuts, Burberry has realigned its product assortment to emphasize signature British‑heritage items—most notably trench coats and check‑pattern scarves—while streamlining its leather‑goods range. A former CEO of Jimmy Choo and Michael Kors, Schulman has leveraged his merchant’s mindset to adjust price points where the brand had overreached. High‑ticket handbags priced above £2,500 have given way to mid‑tier leather goods such as the new Cotswold tote, launched at £1,490, and an £850 Horseshoe crossbody bag. This 9 percent reduction in average bag pricing since October has widened Burberry’s addressable market without diluting its luxury positioning.
At the same time, the company has invigorated its high‑end outerwear offering. In China, for instance, Burberry introduced a limited‑edition corduroy trench coat priced at 115,000 yuan—demonstrating that premium priced styles still have appetite among affluent consumers. Overall, the outerwear range has expanded by 22 percent, catering to markets from London’s damp autumns to North America’s winter chills. Seasonal campaigns like “Burberry Festival,” timed to coincide with Glastonbury and featuring cultural icons in branded rain boots, underscore the brand’s dual commitment to heritage and contemporary relevance.
Operational Overhaul and Workforce Restructuring
Schulman’s turnaround goes beyond P\&L improvements to a deeper overhaul of Burberry’s organizational DNA. The leadership team has been reshuffled to bring in fresh talent with e‑commerce, data‑analytics and digital‑marketing expertise. Burberry’s digital sales now account for nearly one‑third of total retail revenue, up from roughly 25 percent a year earlier, driven by investments in website UX, CRM platforms and social‑commerce activations. The brand has also piloted AI‑powered inventory forecasting tools in key markets, reducing out‑of‑stocks and optimizing markdown strategies.
Regional agility has been another focus. Burberry has granted greater autonomy to its Asia‑Pacific team, where the brand’s reputation index reached a record high in mid‑2025, fueled by localized marketing tied to Chinese luxury festivals and influencer collaborations. In Europe and North America, the company is exploring shop‑in‑shop concepts within department stores to lower operating costs and test new store formats before rolling out standalone boutiques.
To support these structural changes, Burberry has reallocated its talent pool, encouraging secondments between headquarters and fast‑growing markets. A new graduate‑and‑internship program has been launched to cultivate digital, sustainability and customer‑experience skillsets, ensuring the company’s pipeline of future leaders aligns with modern luxury demands.
Broader Impacts on Brand Perception and Market Share
The convergence of cost discipline, product realignment and digital acceleration is yielding early signs of brand revitalization. Independent reputation surveys place Burberry’s global score at its highest ever, surpassing many heritage rivals in consumer trust and admiration. Market‑share data indicate that Burberry is clawing back ground in outerwear, its historic stronghold, and gaining traction in accessories.
Analysts from HSBC and other brokerages have upgraded Burberry’s outlook, arguing that the brand can wrest share from peers that rely heavily on volatile jewelry or ultra‑high‑end handbags. Indeed, the company’s newfound focus on the “everyday luxury” segment—balancing aspirational price points with attainable entry levels—has resonated with younger, digitally native shoppers.
Looking ahead, Burberry plans to accelerate its sustainability agenda, aiming for net‑zero emissions across operations and supply chains by 2040. The company is piloting circular‑economy initiatives, such as repair services for trenches and scarves, bolstering both its environmental credentials and customer engagement.
As Burberry approaches its first anniversary under Schulman, the turnaround plan’s multifaceted impact is clear: streamlined costs underpin healthier margins, targeted product and pricing strategies betoken stronger consumer appeal, and an organizational reset equips the brand for the digital era. While challenges remain—particularly in reviving wholesale partnerships and navigating macroeconomic headwinds—the early traction under Burberry Forward suggests that this iconic luxury house may be poised for a durable renaissance on the global stage.
(Source:www.fashionnetwork.com)