Burberry Group PLC (LSE:BRBY) has launched efforts to revive its loss-making operations by doubling down its focus on heritage and core products.
Chief executive Joshua Schulman unveiled the turnaround bid on Thursday, noting Burberry had “moved too far” from its core with “disappointing results”.
Burberry had focused on “being modern at the expense of [its] heritage,” he told investors, offering “niche” goods and “obscuring [...] more timeless core collections”.
“Burberry's original purpose to design clothing that protects people from the weather is more relevant than ever,” he said.
“Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth.”
It came as the company unveiled a £53 million loss for the first half, against a £223 million profit a year earlier.
Revenue dropped 22% to £1.09 billion, While Burberry’s operating margin narrowed from 15.9% to 4.9%.
Schulman’s plan would focus on “timeless British fashion” and outerwear and see the likes of prices, product offerings and distribution realigned, the company said.
Burberry added it was confident in generating £3 billion in annual revenue over time.
“Today's luxury customer craves authenticity,” Schulman added, “as the only British luxury brand with such strong foundations, we have a competitive advantage.
“We will leverage our strengths and broad universal appeal to reclaim market share.”