Burberry Revenue, Profits Plummet in First Half as New CEO Joshua Schulman Sets Out Fresh Strategy

LONDON – Newly-installed chief executive officer Joshua Schulman unveiled a new “Burberry Forward” strategy for the troubled company, which posted a first-half operating loss of 53 million pounds on the back of a 22 percent decline in revenue to 1.09 billion pounds.

Schulman, who joined Burberry in July following the departure of Jonathan Akeroyd, said the company is now “acting with urgency to course correct, stabilize the business and position Burberry for a return to sustainable, profitable growth.”

He said he’s convinced that Burberry’s “best days are ahead.”

In his debut address to investors, Schulman announced a 40 million pounds cost-savings plan, and said he’s confident his new strategy will help Burberry deliver 3 billion pounds in annual turnover “over time.”

The figure is well short of Akeroyd’s medium-term projection of 4 billion pounds in revenue which was made before the worldwide slowdown in luxury took hold.

Schulman, a retail management veteran whose experience spans premium and luxury brands, said he has high hopes for the brand.    

“My first few months have reaffirmed my belief that Burberry is an extraordinary luxury brand, quintessentially British, equal parts heritage and innovation. Burberry’s original purpose to design clothing that protects people from the weather is more relevant than ever,” he said.

“Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments. Today, we are acting with urgency to course correct, stabilize the business and position Burberry for a return to sustainable, profitable growth,” he added.

In the first six months, comparable store sales were down 20 percent, with double-digit declines across all regions. The company reported an adjusted operating loss of 41 million, compared with a profit of 223 million pounds in the corresponding period last year.

As reported in July, Burberry posted a 22 percent decline in first-quarter retail revenue to 458 million pounds. Comparable store sales fell 21 percent in the three months to June 29, compared with an 18 percent increase in the corresponding period last year.

At the time, Burberry chairman Gerry Murphy called the quarter “disappointing,” and said that if the weakness in luxury demand persists through the second quarter, Burberry would report an operating loss in the first half. He also suspended dividend payments in light of current trading.

Burberry has been in the eye of the luxury storm, attempting to cement its place in the luxury firmament while simultaneously dealing with a slowdown in demand, particularly in the key market of  China.

Since he joined, Schulman has been working to bring Burberry back down to earth, and make it more accessible to a wider variety of people. The most recent campaigns feature celebrities, including Cara Delevingne and Olivia Colman, but also members of the international Burberry community and brand enthusiasts. 

Earlier this week the brand also thrust one of its staples under the spotlight, unveiling a new, virtual scarf try-on experience. The aim is to encourage customers to rediscover Burberry’s signature check scarves in more than 50 colors, online, in-store, as well as on their own mobile devices.

Burberry’s new spirit of democracy is also embodied in the park pavilion pop-ups which were opened at retailers including Antonioli Milan in Italy, Neiman Marcus NorthPark Dallas in the U.S., Hankyu Umeda Osaka in Japan, and the seventh International Import Expo in Shanghai.

In addition to highlighting the classics, Schulman is also exalting Burberry’s heritage, with temporary exhibitions of archive outerwear pieces.

Replicas of Burberry’s designs for Sir Ernest Shackleton’s ill-fated 1914 polar expedition were on display in the Regent Street London store last month, and at the newly refurbished 57th Street flagship in New York. The weatherproof gabardine pieces were part of a wider display of archive outerwear pieces in key stores. 

The new CEO has also been making changes on the managerial front. 

Schulman has tapped one of Burberry’s former star managers, Paul Price, as chief product merchandising and planning officer. Price will take up his new role on Dec. 9 and report to Schulman. He’ll lead the merchandising and planning teams as well as the licensing, architecture and showroom units and join Burberry’s executive committee.

The question remains as to whether chief creative officer Daniel Lee will remain. In September, after showing the spring 2025 show, Lee was upbeat about Schulman’s arrival and indicated that he wanted to stay. 

“What I’ve really felt with Josh’s arrival is a sense of American optimism, which I think is really nice,” Lee said after the show at the National Theatre in London. 

“I enjoy his drive, his positivity, and his way of communication. In its heyday Burberry enjoyed American CEO leadership together with a British designer, and hopefully that’s a great synergy that we can get that on board with,” said Lee, referring to his friend and fellow Yorkshireman Christopher Bailey, who worked with CEOs Rose Marie Bravo and Angela Ahrendts.

With Schulman in the top job, the designer is also ready to look at the collection through a more commercial lens.

“We want the runway shows to feel like a dream, but we also want the clothing to feel like a real proposition, too,” said Lee, adding that his conversations with Schulman have been about “how we can take that [dream] element and filter it through. We need to find smart ways to take the check, to take the new codes, and evolve them into something that’s relevant to the stores. I’m excited by that part of the job.”