Since he joined Burberry as CEO in July, Joshua Schulman has wasted no time in trying to right the ship, with the twin brakes pressing, the slowdown in luxury demand and by past strategies that pushed the brand into territory too specialised, too fashionable and too expensive, and without ever inviting journalists.
His strategy to restore sales and profit growth is to connect the dots between the creative and marketing teams, and has revealed plans to speak to a wider customer base, particularly those left out by Burberry’s failures in the haute couture arena. There’s still a long way to go, though, as couture will require a designer.
A few hours before Schulman spoke to analysts, Burberry announced a 20% drop in retail sales.
And the company announced an adjusted operating loss of £41 million. Its plan is to fill shops and advertising campaigns with flagship products, install ‘scarf bars’ and ‘trench destinations’ in shops, capitalise on gabardine, the brand’s iconic waterproof fabric patented by Thomas Burberry in 1888, and make the brand recognisable once again to its loyal customers, who have never stopped loving the check pattern.