Burberry returns to FTSE 100 amid recovery efforts

London - Following a year of being excluded from the index, British luxury brand Burberry has made a return to the FTSE 100 on the London Stock Exchange. The company was originally relegated to the less prestigious FTSE 250 in September 2024 as a mechanical consequence of its declining share price.

Burberry, which is famous for its tartan, has been hit hard by a crisis in the luxury sector, a slowdown in demand, and the protectionist offensive from the US. In response, the company has begun an "emergency refocus" on its classic products, such as its trench coats and scarves, in an effort to curb its declining results. The company has also initiated a drastic cost-cutting plan and is concentrating on products with prices that align more with its brand identity as a luxury, but not "ultra-luxury," label.

Burberry's last annual results, published in May, were in the red, but by July, the market saw the first signs of a recovery despite quarterly sales still declining. On Monday, the company's share price dipped by 1.3 percent a few hours before its London Fashion Week show, but it has rebounded by 86 percent over the past year.

The brand, which was founded in 1856, still benefits from its reputation. During a state visit to the UK last week, First Lady Melania Trump was seen wearing a long trench coat by the British brand as she disembarked from Air Force One. The company has been a regular supplier to the Royal Family since 1955, when it was awarded a "Royal Warrant" by the Queen.

This article was translated to English using an AI tool.

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