Revenue was down 22 percent in the fiscal first half, and the company posted an operating loss of 53 million pounds amid myriad challenges for the brand.

Burberry also plans to slash costs by millions and has set a lofty new revenue target under CEO Josh Schulman.

Burberry will put the focus back on its core trench coats and scarves, be less ambitious with prices for bags and shoes, and use its British heritage appeal to win back customers, the struggling luxury brand said on Thursday in a strategy update.