More bad news is anticipated at Burberry as it expects to report a half-year loss in November after sales already fell 20 percent in the three months through the end of June. Plus, with shares trading at less than half their value at the start of the year, Burberry failed to survive the quarterly FTSE reshuffle reported on September 3. Amid it all, the company is reportedly preparing to shed hundreds of jobs under a cost-cutting program mainly at the brand’s U.K. offices, with reports suggesting that up to 400 roles could be at risk.

Stock in heritage label Burberry, known best for its trench coats and distinctive check, is languishing at its lowest level since 2010. That led to the abrupt exit of CEO Jonathan Akeroyd in July in the wake of two profit warnings, with yet another boss and new direction in the offing.

Burberry Merry-go-Round

So how did it all go so wrong? In the 1990s, Burberry was the epitome of luxury British fashion, with its signature Nova check and the visionary leadership of U.S. executive Rose Marie Bravo, who took over in 1997.  Creative director Christopher Bailey was the wunderkind, and together they turned it from a well-respected, traditional British upscale fashion company into a global powerhouse.

Bravo stepped down after a decade, followed by another retail luminary, Angela Ahrendts. She was at the helm as CEO between 2006 and 2014 before returning to Apple Inc. Bailey then ascended to CEO but he stepped away in 2017. Up to this point, so far, so good.

Then things went off the rails. Italian Riccardo Tisci was appointed designer in 2018 and tried to reposition Burberry with a clear shift away from its heritage raincoats and scarves to win over younger shoppers, particularly those in China. The brand raised its prices to reflect its self-ascribed caché, and Tisci successfully attracted design plaudits for his street-influenced apparel and accessories. But he failed to leverage the brand’s heritage as it shape-shifted to a more modern sensibility, and he lasted five years, departing shortly after the exit of Marco Gobbetti, the chief executive who hired him.

Next, enter CEO Jonathan Ackeroyd in 2022 and yet another change in direction. He lauded a return to the company’s British history, hiring well-regarded Yorkshireman Daniel Lee as creative head after he made his name reinvigorating another heritage-focused brand, Bottega Veneta. So far there is little evidence that Lee has been able to connect contemporary cool with Burberry’s iconic trench coat and famous check.

And right on cue for another Hail Mary, in July 2024 Ackeroyd was abruptly replaced by Joshua Schulman as CEO. As a former chief executive of U.S. fashion brands Coach and Michael Kors, Schulman’s mandate is to reconnect with its “core customer base,” stressing the appeal of its classic items while still staying relevant to the current wants of shoppers. That’s a tall order.

Customers, many even at the luxury end feeling the cost of living pinch, have balked at paying for Burberry bags now priced at nearly $4,000. Burberry continues to struggle to redefine its identity, while a number of controversial ad campaigns have fallen flat and failed to fully align with the Chinese market as Asian sales slow.

Burberry Profits Warning

In May of this year, Burberry confirmed that its full-year operating profits plunged 36 percent to just under $537 million as it grappled with a challenging economic environment combined with its strategic repositioning efforts. Sales in Asia grew by just three percent over the year, slowed by a 17 percent drop in the fourth quarter, and wholesale revenue is estimated to drop by about a quarter in the first half as Burberry looks to increase control of distribution.

Indeed, Burberry has struggled for some time with the aftermath of its phenomenal earlier success. But that distinctive check design became ubiquitous and lost some of its exclusive allure. On top of that, in 2018 the label courted environmental controversy when it admitted that it had destroyed more than $36 million in unwanted products to prevent counterfeiters from selling their goods on the grey market. In fact, more than $115 million of Burberry products have been destroyed over the five years since 2018. It’s not a good look.

Schulman as Savior?

Schulman was heralded as a positive candidate for the position by Burberry chair Gerry Murphy, who described him as a “Proven leader with an outstanding record of building global luxury brands and driving profitable growth. His extensive experience in luxury and fashion will be key to realising Burberry’s full potential.”

Tellingly, his recent experience suggests the company now recognizes its limitations with its customer base. Schulman has said he will put a greater emphasis on classic pieces and widen price points to better embrace the affordable luxury expected by Burberry’s traditional clientele.  He alluded to providing more details in November. Sneak preview: Burberry has already announced plans to emphasize its coats with a global campaign launching in October.

Schulman, 52, is a Los Angeles native and has worked in the fashion industry for more than 33 years, including at least 24 in executive positions, according to his LinkedIn profile.  He has relocated to London from New York City for his new role.

As CEO at Michael Kors, he had been in line to take over the CEO role at parent firm Capri Holdings, but he left just months before assuming that position. He was also CEO at Coach and served as brand president between 2017 and 2020, plus CEO of Jimmy Choo in London from 2007 to 2012. Before that, he was president of Bergdorf Goodman for five years and held positions at Yves Saint Laurent and Gucci.

Burberry Needs to Fix the Damage

Schulman’s first priority will be to persuade shareholders and customers that yet another strategy shift, following the spate of doomed attempts to create a new contemporary model of the classic British business, will be based on firmer foundations and isn’t just another knee-jerk reaction

Burberry needs to control the brand narrative and the choice he faces is whether to follow the example of Coach and double down on appealing to a wider audience by leveraging designer outlets for wider sales; or, continue to pursue Burberry’s long-term aspiration to move way upmarket.

Schulman must also decide whether to stick with chief designer Lee while refocusing the strategy and merchandise in a slightly different direction — or to cut his cloth and bring in the fourth designer in seven years to try to make the brand sustainable.

So far, the revolving door of CEOs and designers has no guiding North Star at Burberry. It looks random, desperate and embarrassing. Forgive us: It might be time to turn up the collar of that famous trench coat because when the going gets tough it never rains, it pours.