The traditional British brand Burberry will be added to the London FTSE 100 index after one year. FTSE Russell confirmed the decision as part of a quarterly review. The reintegration will be effective from the start of the trade on September 22nd.
The luxury label had left the benchmark for blue chip shares in 2024 after its market value had fallen over 70 percent to £ 2.5 percent since April 2023 (around 3.08 billion euros) and was therefore below the requirements of the FTSE 100.
At that time, the company had difficulties to gain a foothold again after the new creative director Daniel Lee. Ultimately, this led to a restructuring, which resulted in a number of job cancellations and the removal of the former Chief Executive Officer (CEO) Jonathan Akeroyd.
Under the leadership of the current CEO Josh Schulman, who is focusing a turnaround strategy with a focus on the restoration of the brand’s “British”, Burberry now seems to be experiencing a kind of revival.
The plan, which was launched in November 2024, after Burberry had a decline in sales of 20 percent, is intended to improve performance and increase long -term added value. Schulman cited, among other things, “inconsistent brand execution and lack of concentration on our core category outerwear”.
At that time, the CEO said: “We act with urgency to correct the course, to stabilize business and to position Burberry for a return to sustainable, profitable growth.”
Share course under new CEO
According to several media reports, the share price has more than doubled since schoolman took office and has reached a 52-week high of 13.75 British pounds (around 16.85 euros). In early trade on Thursday, the stock fell by 1.6 percent to £ 12.54 (around 15.37 euros), reported WWD.
While the share price seems to have stabilized, the company is still facing the challenge of improving its financial situation. In the 2024/25 financial year, which was published in May, Burberry recorded a loss of £ 75 million (around 91.8 million euros) compared to a profit of £ 270 million (around 331 million euros) in the previous year. Sales fell by 17 percent to £ 2.46 billion (around 3 billion euros).
The company announced further cost savings measures that would target additional savings of £ 60 million (around 73.4 million euros) by 2027 and concern around 18 percent of the workforce.
For the 2026 financial year, the turnaround efforts, which focus on simplification, productivity and the revival of the brand request, will continue to promote margin improvements and sales growth. There were already indications of an improvement in the report for the first quarter, which showed more comparable sales and thus reflected the “strength in our core categories”, said Schulman.
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