Its chairman, Gerry Murphy, promised in July the brand would take “decisive action to rebalance our offer to be more familiar to Burberry’s core customers”.
Barclays analysts warned Burberry was facing “structural brand weakness”, which led to sales falling 22pc from April to June.
They said: “Burberry looks likely to turn loss-making for the first time in H1-25 and considering that we expect the environment to remain tough next year, it could be difficult to see margin recovery in the short term.”
It has also had to contend with slowing demand for luxury goods across the world, which has hurt investors’ confidence in many of the biggest brands.
This includes Kering, the owner of Gucci and Balenciaga, which was also downgraded by Barclays amid fears of declining demand in China.
Burberry declined to comment.