Burberry's CEO, Joshua Schulman, has a bold vision: to transform the brand's 'Britishness' into a global language that resonates with luxury consumers worldwide. However, this journey hasn't been without its challenges.
Despite a 15% sales decline over the past year, Burberry has sparked investor enthusiasm, with its share price doubling between 2024 and 2025. So, what's driving this market optimism?
It's all about confidence in Schulman's pragmatic approach to branding, pricing, and more. After years of ambitious yet ill-fitting turnaround plans, investors believe Schulman's strategy will steer Burberry back on the path to growth.
Since joining Burberry in 2024, Schulman has made some decisive moves. He swiftly cleared inventories to make way for new collections, introducing more accessible pricing and stronger branding. The focus? Hero bags priced around £2,000, tartan scarves, and polo shirts with a touch of Burberry check.
But here's where it gets controversial... Schulman believes Burberry's authenticity lies in its outerwear and scarves, not handbags. He argues that the brand had lost its way by prioritizing categories that weren't its historic core.
And this is the part most people miss... Schulman's strategy is not just about products; it's about storytelling. Burberry's marketing campaigns now feature iconic British films and talents like Kate Winslet, celebrating the brand's heritage and legitimacy.
When it comes to pricing, Schulman aims for a balanced pyramid, offering 'good', 'better', and 'best' options. He believes Burberry should cater to a broad audience, providing access points like polo shirts and scarves, while maintaining its luxury status.
Implementing these changes wasn't easy, especially with high levels of pre-existing inventory. Schulman's team took decisive action, offering deep discounts during the festive season to clear stock and invest in the new.
Schulman's sense of urgency has been a key differentiator. He believes in striking a balance between long-term strategic plans and immediate action, especially as an independent, publicly traded company.
The results? A 7% reduction in inventory and a refocus on Burberry's core strengths.
But what about the human cost? Schulman admits that job cuts are one of the hardest parts of the job, but he believes these decisions are necessary to reignite desire and compete in a tough market.
The runway show is a crucial moment for Burberry, a laboratory for ideas that trickle down to the entire range. Schulman is excited about the evolution of Burberry's codes under Daniel Lee's direction, especially the subtle and overt use of the iconic Burberry check.
While some products are made elsewhere, Burberry's pinnacle trench coats and scarves are crafted in England and Scotland, respectively. Schulman sees this as an area for further exploration, leveraging British craft and industry.
In conclusion, Schulman's strategy is a bold move to reclaim Burberry's authenticity and heritage, focusing on its core strengths in outerwear and scarves. It's a fascinating journey that invites discussion: Will Schulman's vision pay off, or is Burberry taking a risky path? What do you think?
