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PRIVACY
Retail & Consumer

Burberry set to re-enter FTSE 100 in major milestone after share price doubles

The luxury brand fell out of the FTSE 100 in its September quarterly reshuffle last year after its share price dropped nearly 75 per cent in 16 months

The esteemed luxury brand is poised to make a comeback to the FTSE 100(Image: Getty Images)

Burberry is poised to make a comeback to the FTSE 100 in March as its shares have soared, doubling since hitting low points in September.

The esteemed luxury brand had dropped from the FTSE 100 following the quarterly reshuffle last September when its share price plummeted by nearly 75% over 16 months, as reported by .

However, optimism for the luxury market's recovery and a well-received revival strategy under the leadership of CEO Joshua Schulman appear to be bearing fruit. The company's share price has skyrocketed by just over 98% in the past six months, raising its market capitalisation to approximately £4.04bn.

As of February 7, Burberry ranked as the 89th-largest company on the London Stock Exchange. Maintaining this rank would ensure its automatic re-entry into the FTSE 100 during the upcoming March reshuffle.

RBC luxury analyst Piral Dadhania mentioned that Burberry is her "preferred turnaround idea" of the year. November saw the launch of an ambitious turnaround plan for Burberry which involved appointing new leaders in marketing, product merchandising, and Americas divisions, slashing costs by £40m, and refocusing on outerwear.

This strategy led to a surge in demand towards the end of 2024, with sales in America increasing by four percent quarter-on-quarter, and a significant reduction in losses elsewhere.

Prior to this, Burberry had been grappling with a shaky brand image, frequent changes in leadership, and waning investor confidence – challenges all intensified by a broader post-pandemic slump in the luxury sector.

Interestingly, the company's recovery strategy has aligned with initial indications of a revival in the sector. 海角视频 stocks have collectively risen by approximately 30 per cent over the past three months, according to Dadhania, due to an improving consumer climate in America and a stabilising performance in China.