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.

Troubled British fashion house Burberry on Thursday announced cost-cutting plans after posting a loss, with the global luxury sector pressured by weak Chinese demand. China is the world's biggest spender in the luxury sector,

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.

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.