Burberry to rejoin FTSE 100 amid stronger share price

British heritage brand Burberry is set to rejoin London’s FTSE 100 index a year after it was demoted. FTSE Russell confirmed the decision came after a quarterly review, with the reinstatement to take effect from the start of trading on September 22.

The luxury label left the blue chip benchmark in 2024 after its market value declined over 70 percent since April 2023 to 2.5 billion pounds, putting it below the requirements of the FTSE 100.

At the time, the company had been struggling to regain ground following a brand identity shift driven by its latest creative director Daniel Lee. This ultimately led to a restructuring that resulted in a series of job cuts and the ousting of its former CEO, Jonathan Akeroyd.

Now, however, Burberry appears to be enjoying somewhat of a revival under the direction of its current CEO, Josh Schulman, who has been leading a turnaround strategy with a core focus on restoring the brand’s ‘Britishness’.

The plan, which launched in November 2024 after Burberry reported a 20 percent drop in revenue, intends to improve performance and drive long-term value creation, with “inconsistent brand execution and a lack of focus on our core outerwear category” cited among the issues by Schulman.

At the time, the executive said: “We are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth.”

Share price turnaround under new CEO

Since Schulman joined the company, its share price has more than doubled, according to multiple media outlets, with trading at a 52-week high of 13.75 pounds. In early trading on Thursday, shares decreased 1.6 percent to 12.54 pounds, WWD reported.

While Burberry’s stock price appears to be on a more stable trajectory, the company is still facing an uphill battle in improving its wider financial status. In full year 2024/25 results issued in May, Burberry posted a loss of 75 million pounds, compared to a 270 million pound profit in the year prior. Revenue also slipped 17 percent to 2.46 billion pounds.

The company outlined a number of further cost-saving measures that targeted an additional 60 million pounds in savings by 2027, yet would impact around 18 percent of its workforce.

For FY26, turnaround efforts focused on simplification, productivity and reigniting brand desire will continue in a bid to deliver margin improvement and top-line growth. Evidence of improvement was also present in its Q1 report, for which it posted stronger comparable sales, reflecting “strength in our core categories”, Schulman said.