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.

The luxury group said it is taking steps to cut costs and reduce inventory as part of a new plan to revitalize the brand.