Burberry has finally got its mojo back.
The British luxury brand has undergone a major turnaround effort after a gloomy 2024, where sales slumped, jobs were cut, and its CEO was ousted.
New CEO Josh Schulman, previously at the helm of Michael Kors, has enacted major changes at the brand — cutting costs in the business (1,700 workers were laid off last year), refocusing on Burberry’s iconic products, and overhauling its marketing to double down on its British heritage.
His strategy is paying off. For the first time in two years, Burberry reported an increase in same-store sales growth across the group for the second quarter, growing 2%.
While it’s likely also benefiting from an industry-wide gradual rebound in the luxury goods market after a slowdown, it’s clear that the buzz around Burberry is back.
“My belief in this extraordinary British luxury house is stronger than ever,” Schulman said in a statement accompanying earnings.
“With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love,” he added.
‘Cool Britannia’
Under Daniel Lee’s creative direction, Burberry has been refocusing on what it’s best known for — the classic trench coat and check pattern. But Lee is putting his own mark on it.
He’s “dialling up Britishness in a way that feels both modern and considered. His take on the check has introduced a softer, more natural palette — with shades of olive, rust, and oxblood giving it a fresh, versatile update,” fashion site SheerLuxe wrote.
The shift to focus on its core products has also simplified its brand offering.
Analysts had previously criticized the company for confusing customers by venturing into new areas, such as luxury handbags, which they said didn’t necessarily align with the brand’s identity.
“They tried to be a major fashion player because fashion was back in fashion,” Jelena Sokolova, a senior equity analyst at Morningstar, previously told Business Insider. “It was the same with boosting leather goods. Neither of these things, I would say, are extremely strongly in the brand DNA.”
Burberry’s emphasis on Britishness is turbocharged in its marketing campaigns, where it doubles down on the “Cool Britannia” vibe — a trend noted by fashion search platform Lyst earlier this year.
This included its “Festival” campaign, which celebrated British music festival culture and 1990s British fashion, featuring model Alexa Chung and music legend Liam Gallagher, among others.
‘Moving in the right direction’
Burberry’s more recent ad campaigns feature actor Olivia Colman in mini films that showcase the “adventures of first-time tourists” in London.
“They’ve completely gone back to their roots,” branding expert Camille Moore said in a recent Instagram video interview.
“What Burberry has figured out is that they understand that good socials come from having a clear brand … they’ve gone back to their heritage British roots.”
Crucially, Moore said these campaigns are convincing her to buy its products.
“They found an entertaining and engaging way to communicate the Burberry point of difference, in a way that still revolves around the brand universe,” she said.
Analysts seem to be celebrating its comeback effort.
“We see that Burberry is slowly but surely moving in the right direction,” Bernstein senior analyst Luca Solca wrote in a note to clients on Tuesday.
“The trend should continue,” he said, as the “new vision takes full shape.”
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