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.

The luxury group said it was taking steps to cut costs and change its pricing strategy, after it slid to a first-half loss on sharply lower sales.

Burberry's CEO Joshua Schulman said the troubled British retailer will act "with urgency" to address woes fueled by "inconsistent brand execution."