Group 1 - Burberry has outlined a new strategy focusing on scarves and outerwear, particularly trenchcoats, in response to a significant quarterly loss [1][2] - The strategy shift resulted in a 17% increase in Burberry shares during London trading, although the stock is still down 40% year-to-date [2][5] - The luxury sector, including Burberry, is facing challenges due to reduced spending from Chinese consumers amid a prolonged real estate slump [2][3] Group 2 - Burberry had previously expanded into handbags and accessories but struggled to connect with consumers while attempting to move upmarket and increase prices [3] - Newly appointed CEO Joshua Schulman emphasized the need to return to the brand's core strengths in outerwear and scarves to stabilize the business and achieve sustainable growth [4] - For the first half, Burberry reported a loss of GBP53 million ($67.07 million), a significant decline from a profit of GBP223 million in the same period last year, with revenue falling 22% year-over-year to GBP1.09 billion [5]
Burberry Puts Trenchcoats and Scarves at Center of New Strategy