Burberry will reclaim its spot in the FTSE 100 later this month, signalling growing investor confidence in the luxury brand’s ongoing turnaround under chief executive Joshua Schulman.
The British fashion retailer, which was relegated to the FTSE 250 last year after 15 years in the top tier, will re-enter the blue-chip index on 22 September as part of FTSE Russell’s quarterly reshuffle.
Shares in Burberry have surged nearly 95% since Schulman took over, reflecting early success from his strategy to “reground” the brand as a champion of timeless British luxury.
The approach has focused on outerwear, including its £1,900 signature check-print coats, alongside high-profile campaigns to bolster brand perception amid weaker spending in China and a broader slowdown in luxury retail.
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Burberry’s recent financial performance shows progress in its turnaround.
While the group reported an operating loss of £3m for the 52 weeks to 29 March, comparable store sales improved in key regions, and management expects cost-saving initiatives totalling £80m annually to start feeding through later this year.
Schulman said at the time: “The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead. Although the external environment remains challenging, we are encouraged by the initial progress we are starting to see.”
The FTSE 100 return marks a symbolic milestone in Burberry’s recovery, as the retailer continues to stabilise sales, enhance brand desirability, and implement strategic cost reductions, including a plan to cut 1,700 roles by 2027.
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