Burberry to test the revival on the Fashion Week of London

Burberry's Tornaround Drive, who has taken advantage of the Oscar winner, Olivia Colman, and the Oasis leader, Liam Gallagher, to defend his British heritage and his classic gabardina, faces a new test on Monday when he presents his last designs at the London Fashion Week.

The CEO Joshua Schulman, an American, has reviewed Burberry's marketing to transmit a Britishness version with which buyers around the world can relate, having criticized the decisions of products and prices of his predecessor, which he considered that he had an “niche aesthetic” and were not recognizable as Burberry.

“He felt very high fashion and quite avant -garde, and the collections you are seeing are now very classic, very clear heritage designs,” said Anna Farmbrough, Netony One portfolio manager, which contains Burberry actions.

The first lady arrives in Britain with Burberry

The role of creative director Daniel Lee has evolved since Schulman assumed the position in July last year, and the CEO links the design more closely with commercial teams. As a result, speculation has revolved how long read, designated in September 2022, it will remain on paper.

“Josh has normalized the relationship between an executive director and a creative director,” said Jeremy Smith, Variable Income Manager of the United Kingdom in Columbia Threadneedle in London.
“It is obviously important for Burberry who is its creative director, but should not define the business.”

Burberry, Bajo Schulman, has launched campaigns on social networks with celebrities strongly associated with Britishness, such as Colman, who played Queen Elizabeth II in the Netflix series “The Crown”, and Riffing cultural moments such as the Glastonbury Music Festival.

The brand has also reached the largest political stage: when Air Force One landed in London on Tuesday night for the state visit of the president of the United States, Donald Trump, to the United Kingdom, Melania Trump left the plane with a Burberry gabardina.

“The use of Burberry of social networks has been very intelligent and is very powerful because it can change perceptions quite quickly and achieve a fairly wide penetration, while the positioning of the product in the world of luxury has long been changing the way people think,” said Smith.

Sales are expected to return to growth

Burberry's shares have won 50% since Schulman took office, since investors welcomed the changes, including a 20% cut for the workforce. However, the real proof of change occurs in the months of autumn and winter, during which the brand generates most of its income.

While Burberry's similar sales growth has been negative during the last seven quarters, the last result decreased only 1% year -on -year, and analysts expect sales to grow again this quarter as the change begins to bear fruit.

“You expect that they can return to where they were historically, in terms of sales, and I think they have a very good opportunity, under Josh, to grow beyond that,” said Netly One's Farmbrough.