Amidst declining sales and a significant operating loss, Burberry's newly appointed CEO Joshua Schulman has unveiled a robust turnaround strategy aimed at resurrecting the storied British luxury brand. In a bid to stabilize the business, Schulman announced a 40 million pound cost savings initiative, emphasizing a renewed focus on the company's traditional strengths in outerwear. With the festive season poised as a crucial period, Burberry's sales continue to lag, having witnessed a 20% decline in constant currencies for the first half of the financial year.
The luxury brand also suspended its dividend for 2025, acknowledging that previous price hikes in leather goods did not align with brand authority, which they are now addressing. The market's response to the turbulence has been sharp, with Burberry's shares plummeting close to 50% this year. However, speculation around potential acquisitions, particularly by Moncler, has stirred investor interest despite denials of any ongoing talks, underscoring the brand's vulnerable yet intriguing position in the luxury landscape.
(With inputs from agencies.).
