Ailing luxury brand Burberry has vowed to return to its roots under new chief executive Joshua Schulman in a bid to reclaim its fashionable status among consumers.

The arrival in July of Mr Schulman, who boosted the profits and profile of US brand Coach during his tenure there, was bound to bring with it a much-need change of direction at Burberry. The company, which lost its way as a style powerhouse after wandering too far into the avant garde, dropped out of the FTSE 100 in September with a valuation of £2.23 billion, down 56% on what it was worth at the end of last year. 

Speaking today after the group posted a loss of £41 million for the six months to the end of September, Mr Schulman said he has spent his first 90 days in office putting together a £40m cost-cutting programme as Burberry is "acting with urgency" to stabilise the business.

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The plan is to return to the brand's origins in outerwear, including trench coats and scarves with its distinctive Burberry check. A new outerwear campaign, It’s Always Burberry Weather, will involve the rollout of “scarf bars”, starting with Burberry's 57th Street flagship store in New York.

The strategy requires a careful balancing act so as not to skew the Burberry offering to a narrow based of luxury customers at the expense of its loyal fanbase.

Previous attempts to "premiumise" the brand have done little to help Burberry, whose sales remain subdued with operating margins in negative territory. The downturn in consumers spending in key luxury retail markets such as China has impacted the whole of the sector, but other brands have proven more resilient.

Mr Schulman's efforts to make the brand more desirable will be under close scrutiny, but with hope that this could prove a turning point in what has been a very difficult period for Burberry.