Burberry returns to the FTSE 100: a strategic turnaround for the British fashion house

After a year outside the FTSE 100, Burberry is back among the UK’s most valued companies. A recovery guided by a refocus on its DNA and tight management.

Excluded from the FTSE 100 in September 2024, Burberry is set to rejoin the London Stock Exchange’s flagship index. This announcement, confirmed by the London Stock Exchange Group, marks a major turning point for the British fashion house, which has been weakened in recent years by sluggish financial performance.

Burberry’s return to the FTSE 100 is due to a rise of over 70% in its market value, now reaching around £4.6 billion, according to Bloomberg. This spectacular rebound is part of a dynamic transformation driven by Joshua Schulman, appointed CEO in summer 2024.

Creative refocusing and restructuring

Schulman’s priority was clear: to put Burberry back at the heart of its outerwear heritage, promoting its signature tartan trench coats, jackets and scarves. This repositioning choice aims to reaffirm the brand’s identity in a premium, easily identifiable and historically strong segment.

At the same time, a cost-cutting strategy is underway, with a target of £100 million in savings by 2027. This restructuring includes some painful decisions, such as the planned elimination of 1,700 jobs worldwide, announced last spring.

A dynamic that’s reaching as far as Paris

Burberry may be a British house, but its influence extends far and wide in Paris, the fashion capital of the world, where it owns several iconic boutiques and regularly organizes events. Its return to prominence could influence the decisions of other European brands, particularly when it comes to financial management during the luxury downturn.

In Paris, where major brands such as Chanel, Dior and Louis Vuitton are stepping up investment in physical retail and customer experiences, Burberry seems to be following a similar logic, with a clear focus on product and profitability.

Also read: Hermès defends its Oran sandals in court