Checkmate: Burberry Stock Jumps 20%

Shares in the British heritage brand Burberry (BRBY.L) were up around 20% yesterday after the company announced its overhaul strategy going forward.

It’s been a bit of a rocky road so far this year for Burberry. With tumbling stock prices, a weaker demand in China and a growing consumer shift away from the brand’s luxury streetwear heydays of the late 2010’s & the early 2020’s, Burberry were booted off the FTSE 100 back in September 2024. The publicly traded company had lost 40% of their overall value alongside a cost of living crisis that signalled some troubled times for the British heritage brand. With rumours of a potential takeover from Moncler, yesterday Burberry announced its overhaul strategy which sent its stock jumping around 20%.

 

 

So what is Burberry’s overhaul strategy? It’s still too early to determine if Burberry will make a profit for the full fiscal 2024 year, however the plan is to focus more on their classics such as trench coats & check scarves as oppose to bags & shoes with more affordable pricing. Burberry reported a £41 million operating loss for the first half of its financial year as well as announcing a £40 million cost saving plan. The news went down well with investors & analysts marking the brand’s biggest one day gain on the London Stock Exchange. Burberry also aims to deliver annual revenues of £3 billion although timeframes are not clear at this stage.

We took pricing too high across the board. We created new brand codes that were not familiar or recognisable for our customers.

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Joshua Schulman – CEO Burberry

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