“Burberry’s Stock Decline Threatens FTSE 100 Membership”

Burberry is poised to be taken off the FTSE 100, signaling the conclusion of its 15-year affiliation with the London Stock Exchange’s esteemed roster.

The luxury label’s shares have declined by a third over the past three months, attributed to a dip in overall market demand and an incomplete brand revitalization, as per Bloomberg.

As the market continues to face difficulties, Burberry has witnessed its market capitalization nosedive ahead of the quarterly update concerning adjustments to the index, set for Tuesday.

With a market valuation of £2.5 billion, Burberry stands at 140th in the FTSE 350 Index, which encompasses the UK’s large and mid-tier firms. It significantly lags behind the 111th position required to remain in the FTSE 100, a place it has occupied since September 2009.

Analyst Zuzanna Pusz from UBS Group AG remarked last month, “Burberry is encountering difficulties in its investment attractiveness as it seeks to navigate restructuring while striving to position itself as a true luxury label.”

Burberry is not the sole retailer to depart from the FTSE 100; Ocado also exited the index in June after its market valuation plummeted from a high of £22 billion during the pandemic to merely £3.6 billion earlier this year.

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