Burberry has announced plans to cut costs by £40m after the troubled fashion brand stumbled to a £53m loss in six months.
Joshua Schulman, who took over as chief executive of the British luxury stalwart in July, said he wanted to focus on “productivity, simplification and financial discipline” in a bid to “stabilise the business”.
Burberry suspended its dividend for 2025 after it fell a loss in the six months to September, having recorded a £223m profit during the same period last year.
However, Burberry shares surged by 14.2pc in early trading after Mr Schulman pledged a “course correction” under his new strategic plan to reshape the brand as the luxury fashion sector navigates weak demand, particularly in China.
In its strategy update, Burberry signalled that its price increases had gone too far, saying prices, particularly in leather goods, “did not always align with our category authority”.
Mr Schulman said his turnaround plan would involve improving its website and in-store productivity, shaking up pricing and focusing more on the company’s core products.
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.”
He added: “Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth.”
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