Burberry is set to be removed from the FTSE 100, marking the end of its 15-year presence on the London Stock Exchange’s prestigious list.
The luxury brand’s stock has fallen by one-third over the last three months, following a slowdown in the overall market demand and an incomplete brand overhaul, according to Bloomberg.
As the market continues to struggle, Burberry has seen its market value plummet ahead of the quarterly update regarding changes to the index, scheduled for Tuesday.
With a market capitalization of £2.5 billion, Burberry ranks 140th in the FTSE 350 Index, which includes the UK’s large and mid-sized companies. It falls significantly short of the 111th position needed to remain in the FTSE 100, a spot it has held since September 2009.
Analyst Zuzanna Pusz from UBS Group AG noted last month, “Burberry is facing challenges in its investment appeal as it attempts to navigate restructuring while striving to establish itself as a genuine luxury brand.”
Burberry isn’t the only retailer to exit the FTSE 100; Ocado also left the index in June after its market value plummeted from a peak of £22 billion during the pandemic to just £3.6 billion earlier this year.
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