Moda alchemy

Burberry has been drifting for years. The trench hasn’t lost its appeal. The check continues to be a symbol of British edge. And the heritage still carries weight. But the spark is dimming. The desire, cultural influence, and relevance that once made Burberry a global obsession are fading fast.

And Burberry is well aware of it. So, the brand had to do something, right? In November 2024, Burberry launched a brand-new strategy called “Burberry Forward.” The goal: to fight the downward trend and convince luxury buyers to care again. But before diving into the details, let’s take a moment to check out the hard times the brand has faced. Because the numbers paint a pretty harsh picture.

According to The Guardian (2024), Burberry’s profits crashed by 40%, with global sales down 8% in the second half. It suffered the most in the markets, which should have been a great source of growth. But, they weren’t: the US (-14%) and China (-19% in Q4). Now add a 53% drop in share price, and you get a rough idea of how serious the situation is.

But beneath these financial bruises lies a deeper one: An Identity Crisis.

Analyst Yanmei Tang (Third Bridge) said: “Burberry is among the brands that have been affected by a slowdown observed across the wider luxury industry. High-end customers have become pickier about what they buy.

“Our experts say Burberry is struggling to clearly define and elevate its brand identity, resulting in confusing messaging and poor sales growth. There is too much reliance on a new creative direction rather than making operational changes.”

Yes, the luxury sector has been experiencing a slowdown. But Burberry’s decline is more noticeable because the brand has yet to define a modern vision of British luxury. This confusion makes it tough for them to connect with today’s consumer. That’s exactly what “Burberry Forward” aims to fix.

Now, on to “Burberry Forward ”

“Burberry Forward” is a reboot plan built around heritage values, product focus, commercial clarity, and operational discipline with a single focus: build desire first, revenue second. You can say it’s an attempt to reconnect the brand to its roots. The goal is to modernise the business around a more cohesive identity. 

At the brand level, Burberry is returning to classic British luxury style, maintaining a universal appeal by balancing town and country images. The trench, the scarf, the checks, and London itself are being used as emotional touchpoints in campaigns designed to reset how people see the brand.

Product leadership is another pillar. Burberry is tightening its focus around core categories: reviving its heritage trenches, elevating wardrobing, and strengthening accessories offerings. At the same time, it is cutting the excess. The brand is also simplifying its “good, better, best” structure and finally aligning runway drops with what shoppers see in-store.

Burberry is rethinking the customer journey by catering to product needs and integrating customer insights into product decisions. It’s using defined segments: fashion leaders, loyal investors, conservative shoppers, hedonists, and aspirational luxury buyers, to tailor the offer and experience well.

In stores, transformation is already in progress. “Scarf bars” are rolling out to 200 locations by the year-end. This is alongside new trench and polo destinations, and AI-driven clienteling. Digitally, Burberry is sharpening the e-commerce experience with richer product storytelling, stronger styling and imagery, and improved product personalisation.

Distribution is being recalibrated for prominence over volume. Stores are becoming denser, featuring a wider variety of categories and smarter cross-category merchandising. Retail space is stable. It is largely devoted to high-impact flagships. Wholesale is intentionally reduced to mid-single digits (roughly 4–6% of total revenue). Key partners now help with brand visibility (growing reach and attracting new customers), rather than financial dependency.

Behind the scenes, the operations engine is being redesigned. Cost discipline, selective investment, and targeted optimisation are projected to deliver £80m in annualised savings by FY26. They are expected to reach £100m by FY27. Inventory has been tightened to restore scarcity and margin consistency.

Culturally, Burberry Forward aims to achieve tighter alignment between creative and commercial teams. Stronger accountability, leadership renewal, and deeper ESG commitments across the supply chain and climate targets. The goal involves both external transformation and internal cohesion.

Early signs suggest the plan is gaining traction.

Brand desirability is rising. Margins are improving. Q2 store sales returned to growth. Wholesale partners have responded positively to new collections. But let’s not forget, progress is still fragile. Revenue is still sensitive. Sustained progress is needed for the next stage of growth.

This is what Joshua Schulman, the CEO of Burberry, says:

“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever. 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, resulting in comparable store sales growth for the first time in two years. While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry’s best chapters lie ahead.”

While he is optimistic, much of that optimism comes from the interim fiscal year 26 results. These results cover 26 weeks to 27 September 2025 and were published on 13th November 2025. Below is the chart for reference.

• Topline performance remains delicate. H1 comparable sales were flat (0%), and revenue fell 3% constant exchange rates (CER), indicating stabilisation but not yet acceleration.
• The adjusted operating profit of £19m was overshadowed by a £37m restructuring charge (H1 FY26 Financial Performance), producing an £18m operating loss.
• Gross margin rose to 67.9% (+410bps CER) as a result of better inventory management, but long-term sustainability requires revenue growth to match efficiency gains.
• Free Cash Loss improved sharply to £50m from £184m—still negative, but heading in the right direction.
• Product performance shows potential in core heritage categories like outerwear and scarves, especially the AW/25 collection. They received solid consumer response (according to CEO Joshua Schulman). However, he also mentioned that handbags are still underperforming (Investing.com, 2025). It’s a serious weakness in a major category. LVMH and Kering brands rely on this for consistent, high-margin sales.

Burberry’s long-term growth:

Looking ahead, growth will depend on two forces. First, the global luxury market’s response. And second, the flawless execution of “Burberry Forward.”

As of now, luxury demand is uneven, with recovery and growth happening at different speeds across regions. Burberry’s Q2 recovery (+3%) in China looks encouraging, suggesting luxury consumers are returning. However, the market is still volatile. Geopolitical tensions and fluctuating consumer confidence make it challenging to sustain positive growth.

Burberry’s results show a similar mixed performance pattern in the US (+3%), largely driven by new customers. It appears the brand’s fresh approach is starting to pay off. In EMEIA, growth was more modest at +1%, indicating cautious consumer sentiment. The UK situation is trickier. The removal of the UK VAT Retail Export Scheme has made the country less appealing to international shoppers. Tourists no longer benefit from tax-free purchases. So, they’re opting for destinations like Paris, Milan, or Madrid, where they can receive a 20% refund. This policy change has led to a sharp decline in high-spending tourist traffic at British luxury retailers. Footfall and sales have decreased across the UK. Some of the biggest names in the fashion industry have felt the effects first-hand, including Harrods, Selfridges and Burberry.

The strategy execution, meanwhile, is still in its early chapters. Burberry’s rise to #17 on the Lyst Index shows a boost in brand interest. Inventory discipline is indeed helping reposition the brand. But reliance on heritage products and the slow performance of handbags create structural risks.

Overall, the impression is balanced: confident, but cautious.

Burberry has stopped the decline (the hardest part of any turnaround). Q2 growth, improved sell-through, and stronger margins are visible proof that the strategy is working. But investors are cautiously optimistic. The brand is transitioning from stagnation to targeted, profitable growth. The next few quarters will reveal if its efforts will lead to a long-term recovery of profitability.

Now, the real question is: Can Burberry carry this momentum into the crucial holiday season and prove that its new approach has the potential to deliver steady, full-year top-line growth?