Burberry to Rejoin FTSE 100 as Share Rally Under New Boss Lifts Luxury Retailer

Burberry will rejoin the FTSE 100 index on September 22 after its shares surged following a management-led turnaround, the company’s move back into the blue-chip benchmark marking a rapid recovery for the British luxury retailer.

Shares in the company have climbed about 95% since Joshua Schulman took the helm and set out a strategy he described as a "regrounding" of the brand, prioritising "timeless British luxury" and a narrower product focus that has emphasised outerwear, including its higher-priced signature check-print coats. The company was demoted to the FTSE 250 a year ago after 15 years in the FTSE 100.

High-profile marketing campaigns under the new leadership have coincided with improvements in brand perception after a period in which consumer spending softened and sales across the luxury sector were weighed down by weaker demand in China. Market moves this week cemented investor optimism about Burberry’s prospects and were reflected in the decision to restore the group to the FTSE 100.

Metlen Energy & Metals will also enter the FTSE 100 at the same time. The two additions will replace housebuilder Taylor Wimpey and student-accommodation group Unite Group in the top-flight index.

Analysts and investors have pointed to the stock’s sharp recovery since the management change as the key driver of the reclassification, with the share-price performance meeting the criteria used by index managers when reshuffling constituents. The return to the FTSE 100 restores Burberry’s place among Britain’s largest publicly traded companies after a year in the mid-cap cohort.

Burberry’s move comes amid broader volatility in the luxury sector, where many firms have faced a slowdown in growth as spending patterns shifted following pandemic-era rebounds and as luxury demand in some markets, notably China, remained below historic levels. The company’s leadership has said it aims to navigate those headwinds by tightening product focus and reinforcing core brand attributes.

The changes to the FTSE 100 will take effect on September 22, when Burberry and Metlen Energy & Metals will begin trading as constituents of the index, replacing Taylor Wimpey and Unite Group.