Burberry reveals turnaround plan – should you invest in luxury stocks?

Burberry unveiled a new strategy this morning after reporting a pre-tax loss of £80 million. Will the stock come back into fashion and should you invest in luxury goods companies?

A Burberry boutique in London
(Image credit: Photographer: Jason Alden/Bloomberg via Getty Images)

Luxury fashion house Burberry announced its first-half results this morning, unveiling a new business strategy alongside some challenging numbers. The company announced a pre-tax loss of £80 million in the first half. Revenues were also down 22% compared to the same period a year ago.

Some analysts were expecting the figures to be worse, and investors have responded positively so far to the new business strategy announced by chief executive Joshua Schulman. Burberry’s share price is up more than 20% today, at the time of writing. The year-to-date share price loss has narrowed slightly to around 37%.

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.