Burberry, which celebrates its 170th anniversary next year, has long had a hand in defining what Britain looks like to the rest of the world. Founded in 1856 by Thomas Burberry, the brand built its reputation on manufacturing trench coats for soldiers in two world wars. It was then made modern by Christopher Bailey, who turned it into a fashion phenomenon in the first decade of the 21st century. Today, it is Britain’s best-known luxury brand, with a market capitalisation of £4.15bn, and by far its biggest by sales. At one point, a Burberry trench coat – lined with its signature check – was as synonymous with British culture as Union Jacks, football terraces, crown jewels, Earl Grey tea, Wimbledon and the pouring rain.
But the past decade has been stormy. Having led its creative direction for 17 years, Bailey faltered after a disappointing stint as chief executive, and left in 2018. Marco Gobbetti and Riccardo Tisci, from Italy, followed as CEO and CCO respectively. Ultimately, it was another misstep. Gobbetti and his successor Jonathan Akeroyd propelled an ill-judged push upmarket, hiking its prices beyond aspirational customers who had typically bought entry-level items such as the brand’s ubiquitous check scarves. When the luxury sector started slowing after years of unprecedented growth, it prompted a string of dire profit warnings and flatlining sales. It started to feel as though no one knew what Burberry stood for, including Burberry itself. “Burberry was at risk of becoming a me-too streetwear brand,” says Bernstein analyst Luca Solca. “The aims were overambitious. They demanded a painful reset.”
