Burberry to reclaim FTSE 100 spot amid ongoing turnaround

Burberry is on track to re-enter the FTSE 100 later this month following growing investor confidence in the luxury brand’s turnaround under CEO Joshua Schulman, who joined in July 2024.

According to Reuters, it will see Burberry "regain its spot in the blue-chip benchmark", after dropping out in late 2024.

Last November, the group launched a £40 million cost-cutting programme after first sinking to a loss.

Then, in May 2025, Burberry announced proposals to cut about 1,700 jobs worldwide over the next two years as part of its shake-up.

Fast forward to July and Burberry reported that it was "encouraged" by its initial progress from its transformation plan but highlighted that trading conditions remain "challenging".

Retail revenues fell by 6% to £433 million for the 13 weeks to 28 June, compared with a year earlier, noting a drag from currency rates.

However, it reflected a slowdown in the group’s sales decline amid efforts to turn around its fortunes after coming under pressure from weaker luxury spending.

Burberry then said it has made some progress in its transformation efforts but is still in the "early stages" of the potential turnaround.

In a statement, the company said: "In the first half, we are continuing to prioritise investment and expect to see the impact of our initiatives build as the year progresses."

Burberry pointed towards efforts to simplify its operations and improve productivity in a bid to improve profit margins.

In the latest quarter, Burberry said there were improvements across its main regions, amid strong sales of "outerwear and scarves".

Joshua Schulman commented: "The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead.

"Our autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores.

"Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see."

The FTSE 100 changes will be implemented at the close of business on 19 September and take effect from the start of trading on 22 September.