Burberry is facing a demotion from the FTSE 100, ending its 15-year stay on the London Stock Exchange’s blue-chip gauge.
Shares in the luxury retailer have slumped by a third over the past three months following an industry-wide slowdown in demand and a stalled brand revamp, Bloomberg reported.
The ongoing challenging market conditions have sent the retailer tumbling down the market-value rankings ahead of Tuesday’s quarterly announcement of provisional changes to the index.
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Burberry’s market capitalisation of £2.5bn puts it 140th in the FTSE 350 Index of the UK’s large and mid-cap stocks – far below the 111 threshold to retain its place in the FTSE 100, where it has sat since September 2009.
UBS Group AG analyst Zuzanna Pusz wrote in a note last month that: “Burberry’s investment case remains under pressure with the brand now heading into unchartered territory of navigating a restructuring while still not giving up on its efforts to position itself as a ‘true luxury’ brand.”
It’s not the only retailer to crash out of the FTSE 100, with Ocado dropping out of the index in June after its valuation fell from a £22bn high in the pandemic to £3.6bn earlier this year.
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