Burberry will use its British heritage appeal to win back customers by focusing on trench coats and scarves and be less ambitious with prices on bags and shoes, the loss-making luxury brand said in a revamp that sent its shares up sharply.

Burberry unveiled a new strategy this morning after reporting a pre-tax loss of £80 million. Will the stock come back into fashion and should you invest in luxury goods companies?

Troubled British fashion house Burberry on Thursday announced a turnaround plan to kickstart the brand as it reported tumbling profits and a drop in sales.