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Burberry has been relegated from the FTSE 100, having been in the tier for 15 years, after its share price plummeted this year following weaker sales. According to the latest FTSE Russell quarterly review, the luxury clothing brand now joins the FTSE 250, with insurer Hiscox taking its place in the FTSE 100. The changes will take effect from 23 September.
Over the past six months, Burberry’s share prices have fallen by around 50% after a slowdown in demand across the luxury sector.
Earlier this year, Burberry reported that pre-tax profits nosedived 40% to £383m in its full-year results, down from £634m the prior year, as the high-end retailer was hit by a slowdown in luxury spending.
It comes as sales tumbled by 4% to £2.97bn in the year ended 30 March, with its full-year results “underperforming” its prior expectations. Comparable store sales over the year fell by 1% as a challenging H2 offset a “robust” H1.
Comparable sales in its fourth quarter were particularly impacted, falling by 17% in the Asia Pacific region and 12% in the Americas.
The group said it expected H1 to “remain challenging” amid the “uncertain external environment”.
