British luxury fashion house Burberry is set to re-join the U.K.’s FTSE 100 later this month, one year after being relegated from the blue-chip benchmark, index provider FTSE Russell said Wednesday.
The upgrade, part of a quarterly reshuffling at the London Stock Exchange Group (LSEG), takes place as the heritage brand has been regaining traction under a sweeping overhaul by CEO Joshua Schulman.
Burberry shares were down around 0.8% by 11:33 a.m. London time (6:33 a.m. ET).
The luxury group fell out of the FTSE 100 in September 2024, bringing its 15-year run in the U.K. large-cap index to a close.
It will return to the top 100 index alongside Metlen Energy & Metals, as part of changes set to be implemented at the close of business on Sept. 19 and take effect from the start of trading on Sept. 22.
Homebuilder Taylor Wimpey and student accommodation business Unite Group, will meanwhile exit the FTSE 100 index and move to FTSE 250.
Burberry’s share price has fallen sharply over recent years, declining almost 80% from April 2023 to September 2024, as waning sales and a slew of management changes exacerbated a wider luxury downturn.
Turnaround plans under Schulman, who took the reins in July 2024, have shown early signs of bearing fruit, however.
The 169-year-old retailer, known for its trench coats and eponymous check print, reported a better-than-feared 1% year-on-year decline in first-quarter sales in July, led by an uptick in U.S. and European sales.
Schulman has sought to embrace Burberry’s timeless, staple pieces while simultaneously implementing a series of cost-cutting measures, which the company said were on track to deliver £80 million in annualized savings by the end of financial year 2026.
source: cnbc.com
