British luxury brand Burberry has fallen out of the FTSE 100 following a significant drop in its share price.
- The company, now in the FTSE 250, saw its stock fall by 50.8% in six months.
- Burberry’s revenue and profit have been on a downward trajectory over the past year.
- A change in leadership occurred with Joshua Schulman replacing Jonathan Akeroyd as CEO.
- The brand plans to release its interim results for the latest trading period in November.
British luxury brand Burberry has been relegated from the prestigious FTSE 100 index, following a notable decrease in its share price. The brand has now found itself in the FTSE 250, as confirmed by the market operator FTSE Russell. In the past six months, Burberry’s shares have dropped by 50.8% and over the year, they have decreased by an alarming 71.5%, reaching 623p as of early September.
This decline is reflective of a challenging year for the company, with reports indicating a 22% year-on-year revenue dip to £458 million for the 13 weeks leading to late June. Additionally, the brand faced a 4% slump in annual revenue down to £2.97 billion, alongside a significant 34% fall in operating profit, now at £418 million for the fiscal year ending March.
In May, Jonathan Akeroyd, then CEO, candidly remarked on the situation, stating: “Executing our plan against a backdrop of slowing luxury demand has been challenging.” His tenure continued to be turbulent as he was replaced by Joshua Schulman shortly after stepping down. Schulman faces the task of steering Burberry through these tumultuous times.
Despite these setbacks, Burberry is scheduled to unveil its interim results for the 26 weeks ending 28 September, later in November. This upcoming report will be crucial for stakeholders keen to understand how the brand plans to navigate its path forward.
Burberry’s position outside of the FTSE 100 reflects the significant challenges it faces amidst declining demands and internal changes.
