Burberry’s share price has roughly halved over five years while rival Tapestry, owner of Coach, has seen its stock climb. At the start of 2023, Coach was valued at $8bn, roughly equal to Burberry's market cap. The British label’s attempt to compete at the highest luxury tier backfired, with nearly 30 % of its inventory priced above £2,000 in November 2023, dragging revenue down and squeezing gross margins to about 62 % and forced the group to rely on costly promotions.

Coach, by contrast, posted a 5 % sales gain last year and held a robust 75 % gross margin, buoyed by strong U.S. demand that accounts for roughly 60 % of its revenue. Its product mix leans heavily on higher‑margin handbags, which generate almost 60 % of earnings, leaving Burberry’s scarf‑centric line less profitable. Making its profit curve far steeper than Burberry’s sluggish recovery.

Since Joshua Schulman, a former Coach executive, took the helm, Burberry has stripped out avant‑garde pieces, refocused on trench coats, scarves and the iconic check, and cut the share of items above £2,000 to 3 %. That shift lifted last year’s gross margin by more than five points and could value the company at a 50 % premium to Coach on a comparable earnings multiple. Analysts see the narrower price spectrum as a sustainable path to restore investor confidence.