Burberry Returns to FTSE 100 Amid Turnaround Efforts and London Fashion Week Showcase

British luxury brand Burberry has rejoined the FTSE 100 index, marking its return to London’s premier stock market listing one year after its departure. This reentry comes as the company intensifies efforts to revitalize its business through a strategic turnaround plan focused on enhancing sales and reducing expenses amid challenging market conditions.

The global luxury sector continues to face sluggish consumer demand, particularly from China, alongside the repercussions of US tariffs. Burberry aims to regain customer appeal with its iconic outerwear, including its renowned trench coats, which will headline the brand’s runway show closing London Fashion Week on Monday evening.

Investor sentiment was cautious early Monday, with Burberry shares dipping approximately one percent during morning trading. Nonetheless, the stock has experienced a remarkable 86 percent increase over the past twelve months, reflecting growing confidence in the company’s recovery.

After maintaining a position in the FTSE 100 for 15 years, Burberry was demoted to the FTSE 250 in September 2024. Analysts attributed this setback to strategic missteps and diminished demand from the Chinese market.

Since taking over as CEO last year, Joshua Schulman has spearheaded a comprehensive cost-cutting initiative, which may affect up to 18 percent of Burberry’s workforce—around 1,700 employees. Although the most recent fiscal year ended with a net loss, early quarterly results indicate signs of financial improvement.

Established in 1856, Burberry benefits from a storied heritage, including receiving a royal warrant from Queen Elizabeth II in 1955, underscoring the brand’s reputation for exceptional quality. As it works to reclaim its market position, Burberry’s blend of legacy and strategic transformation remains central to its recovery strategy.