Burberry Falls Out of Prestigious FTSE 100 Index on London Stock Exchange
LONDON — Burberry has fallen out of the FTSE 100 index of blue chip stocks on the London Stock Exchange, capping a year of challenges and changes at the British fashion and accessories brand.
FTSE Russell, a global index provider that provides analytics and data services to financial markets, confirmed the change at the close of trading on Wednesday.
More from WWD
A statement said Burberry would officially drop out of the FTSE 100 at the close of trading on Sept. 20, and join the FTSE 250 index on Sept. 23.
Companies drop out of the index when their valuations fall below a certain threshold, and it’s not an unusual occurrence. In 2019, after witnessing a slide in its share price, Marks & Spencer lost its slot in the prestigious index, only to return in 2023.
Burberry made its debut on the London Stock Exchange in 2002, and entered the FTSE four years later.
Over the past 12 months, Burberry’s share price has declined nearly 70 percent, and its market capitalization has shrunk to around 2.23 billion pounds on the back of falling sales in one of the most brutal macroeconomic periods that luxury operators have witnessed in more than a decade.
On Wednesday, the shares closed down 4.5 percent at 6.23 pounds.
The market has been particularly difficult for Burberry which has been looking to push deeper into the luxury space.
The FTSE 100 downgrade comes two months after Burberry reported a 22 percent decline in first-quarter retail revenue to 458 million pounds, with comparable store sales sinking 21 percent.
Burberry chairman Gerry Murphy called the quarter “disappointing,” and said that if the weakness in luxury demand persists through the second quarter, Burberry will report an operating loss for the first half, which ends Sept. 30.
In July, the company replaced its chief executive officer Jonathan Akeroyd with Joshua Schulman, an executive who has extensive experience in high-end and aspirational luxury.
Burberry wants Schulman to transform Burberry into a brand with broader appeal and a bigger focus on luxury outerwear and soft accessories.
“Josh is a proven leader with an outstanding record of building global luxury brands and driving profitable growth,” Murphy said in July.
“He has a strong understanding of our brand and shares our ambition to build on Burberry’s unique creative heritage. His extensive experience in luxury and fashion will be key to realizing Burberry’s full potential,” Murphy added.
Best of WWD
Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures
Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist
Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.