Burberry Puts Trenchcoats and Scarves at Center of New Strategy | Global News Avenue

Burberry (Poppy) on Thursday outlined a new strategy that will focus on outerwear such as scarves and trench coats, as the British luxury goods group reels from quarterly losses.

The shift in strategy pushed Burberry’s shares up 17% in London trading, although the stock is still down 40% this year.

Like the rest of the industry, the luxury goods company has been grappling with the economic slowdown Require From Chinese consumers who have been watching their spending long term real estate plummeted. Chinese consumers have driven growth in the luxury market in recent years, and brands such as Burberry have expanded massively in China to capitalize on their demand for designer products.

In recent years, Burberry has expanded its business focus into areas such as handbags and other accessories. It also failed to win over consumers as it tried to move upmarket and raise prices.

recent appointments Chief Executive Officer (CEO) Joshua Schulman, an American who previously ran Michael Kors and Coach, said the “quintessentially British” brand’s moves outside of its “core outerwear” strengths were part of the reason for its problems.

CEO Schulman says strategy aims to restore profits

“Today, we are taking urgent action to correct course, stabilize the business and prepare Burberry to return to sustainable profitable growth,” Schulman said in a statement.

He added: “We have a strong brand with broad appeal among luxury customers, authority in the outerwear and scarves categories that has remained resilient during this period, and strong presence in all major luxury markets influence.”

Burberry swung to a first-half loss of £53 million ($67.07 million) from a profit of £223 million a year earlier, while revenue fell 22% year-on-year to £1.09 billion in the six months to September 28, down at constant exchange rates. 20%.

Despite Thursday’s gains, the company’s shares are still down 40% this year.