Burberry drops out of FTSE 100 after 15 years as share price slumps
Burberry has dropped out of the FTSE 100 after 15 years on the UK’s top stock market index, after a bruising year for the company’s share price amid a luxury retail slump.
Analytics group FTSE Russell confirmed the changes, which are based on share prices at the end of the day on Tuesday, and will come into effect on 23 September.
Burberry’s share price has flopped by about 50% over the past six months, reaching lows not seen since 2010.
The historic British brand, which is known for its check print and trench coats, was hit by the slow reopening of the Chinese economy after the Covid-19 pandemic.
It has also felt the impact of a slowdown in the wider luxury sector, with demand from shoppers coming under pressure during the cost-of-living crunch.
The company replaced boss Jonathan Akeroyd after just over two years in the job in July, alongside announcing it was suspending its dividend payment to shareholders while it works to bolster its finances.
Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, said: "Turning things around from here is a tough task for the new CEO Joshua Schulman.
"His experience at brands such as Michael Kors, Coach, and Jimmy Choo should help Burberry build back up its brand desirability, but this is likely going to take considerable investment and patience."
Burberry will drop to the FTSE 250 index as a result of the review.
In its place, insurance group Hiscox has taken a spot on the FTSE 100 after seeing its share price rise by a fifth over the past year.