London — On Wednesday, Burberry’s shares surged by an impressive 15 percent, despite the British luxury house posting lackluster quarterly results, including a 6 percent drop in sales and a full-year swing from profit to loss. While the numbers may have been sobering, investors responded enthusiastically — not to what Burberry has achieved, but to what it now dares to abandon.
This show of investor faith comes amid a broader luxury slowdown that has impacted even the most dominant players like LVMH. Yet Burberry's pivot to a “back-to-basics” approach — led by new CEO Joshua Schulman — has injected a sense of strategic clarity long absent from the brand. After years of chasing a vague aspiration to join the ranks of ultra-luxury juggernauts, Burberry is finally stepping back to embrace what made it iconic in the first place.
For over a decade, Burberry had tried — and largely failed — to elevate itself into the rarefied stratosphere of French and Italian leather goods giants. That aspiration involved introducing more high-priced handbags and adopting a more fashion-forward positioning. But for a brand historically anchored in utility, heritage, and Britishness, the shift felt forced and unconvincing. The result was a brand identity in flux, alienating both legacy customers and aspirational ones.
Joshua Schulman’s arrival marked a return to market realism and brand self-awareness. Since taking over last year, the former Coach executive has initiated a bold repositioning strategy rooted in authenticity rather than aspiration. The essence of his approach is deceptively simple: return Burberry to its roots — trench coats, checks, British sensibility — and abandon the uphill battle of competing directly with continental fashion houses in the high-stakes luxury leather goods game.
Burberry's most recent financial results paint a challenging picture. Net losses for fiscal 2024 totaled £66 million ($88 million), compared to a £385 million profit the previous year. But despite the downturn, Schulman’s clear-eyed leadership and methodical course correction have reinvigorated market confidence. The company’s renewed focus on core categories, especially outerwear and classic British style cues, appears to be resonating with both retailers and investors.
In Schulman’s words, “We had been over-indexing on opinionated customers — the kind who shop Phoebe Philo — but that wasn’t enough to sustain a business of this scale.” Instead of catering to a small segment of fashion-forward clientele, Burberry now aims to reconnect with a broader base who recognize — and crave — the familiar codes of the brand.
The new product mix reflects this shift. More accessible handbags, polo shirts with check trim, and reissued classics are taking center stage. Rather than obscure branding and avant-garde experimentation, Burberry is now emphasizing items with strong brand signifiers — things customers can immediately recognize and emotionally connect with. According to Schulman, there is pent-up demand for a Burberry that feels unmistakably Burberry.
This evolution is also apparent in the company’s messaging. Gone is the vague concept of “modern British style.” In its place: “timeless British luxury,” a far more evocative and marketable identity. Schulman has praised the direction taken by chief creative officer Daniel Lee, whose tenure had previously come under scrutiny. Lee’s recent Fall/Winter 2025 collection has been described by Schulman as “an extraordinary expression of timeless British luxury.” Campaigns featuring British icons Kate Winslet and Olivia Colman in classic trench coats have struck a chord with consumers and generated a noticeable shift in sentiment.
There was speculation earlier this year that Lee might exit for Jil Sander, but his continued presence signals stability and a cohesive creative direction. “Myself, Daniel, Jonathan Kiman, Paul Price — we’re all aligned. We’re moving the brand expression forward together,” Schulman emphasized. It’s a stark contrast to the disjointed strategies of recent years, where design, marketing, and merchandising often felt out of sync.
Marketing efforts have also been recalibrated to appeal to a wider demographic. Recent campaigns have leaned into the brand’s British heritage rather than attempting to position Burberry within the rarefied realm of ultra-fashion. Shop windows, digital channels, and social media all highlight recognizable pieces — trench coats, check accessories, classic silhouettes — reflecting a unified creative and commercial strategy.
The short-term wins are promising, but Schulman remains cautious. “It will take time to turn quick wins into sustained business,” he told analysts. Some of those “quick wins” include the return of check-trimmed T-shirts and polos, a category that had previously driven enormous volume during the brand’s early 2000s global expansion phase. Burberry is now reintroducing these styles with higher-quality construction and slightly elevated pricing, hoping to balance accessibility and aspiration.
Still, the road to recovery will not be without pain. Burberry has announced plans to cut 1,700 jobs globally as part of a £100 million cost-cutting program. Office roles will be reduced, night shifts at its Castleford trench coat factory in the UK will be eliminated, and off-peak staffing at stores will be optimized. Schulman defended the decision as necessary “to protect the long-term viability of UK production” and enable reinvestment in brand-building.
While layoffs inevitably spark controversy, analysts view the restructuring as both timely and prudent. “Operational cost cuts will free up resources to reinvest in brand marketing,” said Jelena Sokolova, an analyst at Morningstar. Citi’s Thomas Chauvet echoed the sentiment, stating in a note to clients: “Burberry’s strategic plan is robust and should unlock value in the medium term. While patience is required, potential rewards now outweigh the risks.”
The broader macroeconomic backdrop adds additional pressure. Luxury demand in China — once the industry’s most dynamic growth engine — has decelerated, and new trade policies in the US are adding to the uncertainty. Rising tariffs and geopolitical tensions have made global luxury sales more volatile. However, Burberry’s measured approach to markets like China — avoiding overexpansion while maintaining a strong brand presence — has shielded it from more extreme downturns.
Moreover, Burberry is adapting to the preferences of younger consumers through its investments in digital platforms and social media. The brand has ramped up its presence on TikTok, Xiaohongshu, and Instagram, engaging Gen Z audiences with short-form video content, influencer collaborations, and behind-the-scenes access. Schulman believes that this generation appreciates brands with heritage — but only if they’re communicated with transparency, creativity, and relevance.
The digital evolution extends to retail technology. Burberry has been testing AR features for try-ons, using RFID to personalize store experiences, and introducing more mobile-first shopping tools. These investments are aimed not only at increasing conversions but also at future-proofing the customer experience.
In contrast to some competitors’ expansionist ambitions, Burberry’s turnaround is inward-looking. While LVMH continues to expand its brand empire through acquisitions and full-luxury dominance, and Kering focuses on rebuilding its core brands like Bottega Veneta and YSL, Burberry is narrowing its focus and reasserting its brand DNA. This strategic humility may ultimately be its advantage.
Analysts suggest that by returning to what made Burberry successful in the first place — outerwear, utility, British codes — the brand may avoid the fate of others that overreached. In an increasingly fragmented luxury landscape, differentiation through authenticity matters more than ever. Rather than trying to be everything to everyone, Burberry appears ready to be exactly what it was always meant to be.
The luxury market itself is undergoing structural shifts. Growth now depends less on new store openings or geographic expansion, and more on emotional resonance, product excellence, and cultural relevance. In this context, Burberry’s recalibration might not just be a recovery strategy — it could be a blueprint for how heritage brands stay relevant in the 21st century.
Investors are clearly encouraged by this perspective. They are betting not just on Schulman’s competence but on a market that increasingly values clarity, consistency, and substance over sheer noise. Burberry’s 15 percent stock jump reflects more than quarterly optimism — it reflects belief in a strategy that finally aligns product, purpose, and profit.
As Schulman quoted in reference to Burberry’s refreshed philosophy: “Be yourself; everyone else is taken.” Whether Oscar Wilde actually said it is debatable. What’s clear, however, is that in today’s oversaturated luxury landscape, authenticity — executed with confidence and coherence — is still the most powerful statement a brand can make.
If Burberry continues on this path, grounding itself in the traditions and textures that once defined British style for the world, it may not only regain lost ground — it might, once again, redefine what modern British luxury means.