Burberry has revealed a strategy overhaul and a fresh £40million cost-cutting programme, as the struggling brand battles to turn its fortunes around.

The luxury retailer's shares rose on Thursday following the update, but the company revealed its sales continued to plummet in the second quarter.

Chief executive Joshua Schulman, who joined the group in July, said he wants the business to focus on 'productivity, simplification and financial discipline'.

The new Trump administration could be ‘good news’ for Britain’s defence industry as the incoming US president pushes allied nations to spend more on armaments, according to the boss of Babcock.

Chief executive David Lockwood told the Mail that if Trump continued to press other members of Nato to meet their spending commitments, this could result in demand ‘edging up’ as it did in several countries during his first term in office.

Richard Hunter, head of markets at Interactive Investor:

'Burberry can only hope that these results represent a line in the sand, and that its revised energy will return it to previous glories. It is impossible to estimate how much of its cachet has already been lost, let alone the wider headwinds such as the economic situation in China which continue to be uncertain.

'The share price decline has been severe and relatively concentrated, with a decline of 72% from a peak of over £26 reached as recently as April 2023. Over the last year, the shares have fallen by 56%, including relegation to the FTSE250, which itself added 9.8% over that period.

'A brief bounce over the last few weeks after unconfirmed reports of a bid approach from Moncler of Italy has been followed by a positive share price reaction to these numbers and the group’s intent, although both are far from sufficient to stem the decline.

'In the meantime, and despite the group’s renewed determination, the market consensus of the shares as a sell is unlikely to waver until such time as some measurable progress is made on the new strategy.'

WH Smith has recorded a 16 oer cent jump in annual profits as its travel arm continues to drive sales higher amid ongoing decline in high street revenues.

The group reported underlying pre-tax profits of £166million for the year to 31 August, up from £143 million the previous year.

Trading profits jumped by 15 per cent at its shops based in railway stations, airports and hospitals worldwide, to £189million, with these outlets in the UK seeing earnings leap by a fifth.

Earnings remained flat at its traditional high street arm, at £32 million, despite a 2 per cent drop in like-for-like sales.

Carl Cowling, group chief executive of WH Smith, said: 'The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.'

Boohoo is facing a showdown with Mike Ashley days before Christmas, it was disclosed last night.

Ashley, whose Frasers retail empire owns 27 per cent of the struggling fashion site, will seek to install himself as chief executive at an emergency meeting of investors on December 20.

Boohoo disclosed details of the meeting after markets closed yesterday, with the unscheduled publication of half-year results.

Aarin Chiekrie, equity analyst, Hargreaves Lansdown:

'The plan is to return focus to the brand’s origin – outerwear. Newly minted CEO Joshua Schulman plans to tap into the brand’s heritage to regain its footing in this category, before expanding into other areas.

'But it’s a careful balance, and Mr Schulman won’t want to make the same mistake as his predecessors of skewing Burberry’s offering to a narrow base of luxury customers at the expense of a loyal fanbase.

'Back to recent performance and it was a painful read for investors. Revenue fell at double-digit rates as the group saw declines across all regions, which meant Burberry slipped into loss-making territory over the first half.

'Cost cuts are underway to try and stem some of the financial bleeding, with £25mn of excess material set to be trimmed from the expense line this year. But with no full-year guidance given, it's unclear whether it can return to profit in time.'

Young's has become the latest hospitality firm to outline the impact of employer national insurance hikes and an increase in the minimum wage laid out in the Autumn Budget.

It came as the pub group revealed revenues had soared more than 27 per cent in teh six months to 28 September to £250million, with adjusted earnings before nasties up 23.2 per cent to £59million.

Boss Simon Dodd said:

'I am very pleased with our performance and the progress we have made during the period, which has been achieved despite some challenges.

'The new Government's budget will result in significant increased costs for our industry in the near term through rises in National Minimum Wage and Employer's NI payments.

'We expect the cost impact to be approximately £11 million on an annualised basis from next April. We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers.

'We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses.'

Northwest England water suppler United Utilities expects revenues to soar 10 per cent this year after reporting a more than two-fold rise in first-half profit, supported by pricier consumer bills.

It means revenues for the year to the end of March 2025 are on track for analyst estimates of £2.13billion.

The sector has been under extreme regulatory and public scrutiny, especially as the largest of the British water suppliers, Thames Water, risks running out of funds if financing talks with creditors fall through.

United Utilities posted underlying pre-tax profit of £182.9million for the six months to 30 September, compared with £90.3million a year earlier.

Burberry new chief executive Joshua Schulman has kicked off a turnaround strategy designed to return the struggling fashion brand to growth, as sales continue to plummet.

Revenues fell 20 per cent to just short of £1.1billion in the 26 weeks to 28 September, with the group slumping to a £41million adjusted operating loss for period from a £223million profit over the same period last year.

Schulman told shareholders this morning:

'My first few months have reaffirmed my belief that Burberry is an extraordinary luxury brand, quintessentially British, equal parts heritage and innovation. Burberry's original purpose to design clothing that protects people from the weather is more relevant than ever.

'Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments.

'Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth. We have a powerful brand with broad appeal among luxury customers, authority in the outerwear and scarf categories which have remained resilient through this period, and a strong presence in all key luxury markets.

'Now, we have a clear framework to reignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry's best days are ahead.'