There is growing speculation that British heritage brand Burberry may soon depart from the prestigious FTSE 100 Index.
- Burberry shares have dropped 70% over the past year, hitting a 14-year low.
- By next week, FTSE Russell will determine if Burberry remains in the FTSE 100.
- Burberry’s revenue and profits have declined significantly, with a 4% fall in revenue.
- A recent CEO change occurred as Joshua Schulman replaced Jonathan Akeroyd.
There is growing speculation that British heritage brand Burberry may soon depart from the prestigious FTSE 100 Index. The company has experienced significant challenges recently, with its shares plummeting 70% over the past year to a 14-year low. This decline has led to concerns about Burberry’s future on the FTSE 100 Index, which represents the top 100 most highly capitalised companies listed on the London Stock Exchange.
Burberry shares have dropped 70% over the past year, hitting a 14-year low. The sharp decrease in share value has been a focal point in discussions about the brand’s position on the FTSE 100. The decision regarding Burberry’s place in this prestigious index will be made next week by market operator FTSE Russell, based on the company’s share prices at the close of business next Tuesday.
By next week, FTSE Russell will determine if Burberry remains in the FTSE 100. Should Burberry be removed, it is likely to join the FTSE 250 Index, which includes mid-cap companies. This would mark a significant shift for the brand, which has been a longstanding member of the FTSE 100 for 15 years.
Burberry’s revenue and profits have declined significantly, with a 4% fall in revenue. The company’s profits fell by a third for the fiscal year ending March 30, 2024, in light of a global slowdown in luxury fashion demand. Additionally, a 12% year-on-year drop in fourth-quarter store sales reflects weakened consumer confidence, highlighting the financial pressures on the brand.
A recent CEO change occurred as Joshua Schulman replaced Jonathan Akeroyd. The leadership shift in July followed Akeroyd’s immediate departure, amid mounting challenges facing Burberry. Speaking earlier this year, Akeroyd acknowledged the difficulties in executing Burberry’s plans during a period of slowing demand for luxury goods.
The coming decision by FTSE Russell will be pivotal for Burberry, marking a potential shift in its standing among leading global firms.
