The British luxury fashion house Burberry Group was relegated from the U.K.’s FTSE 100 on Wednesday 4th August 2024, amid declining sales and management upheavals, all adding to the challenges of the 168-year-old retailer
This demotion represents a new setback for Burberry, with its share price having plummeted over 53% this year.
Previous CEOs have endeavoured to refine the brand’s aesthetic. With the appointment of Joshua Schulman as the new chief executive in July 2024, a shift in strategy is now indicated.
Burberry is not alone in its waning fortunes. The luxury sector as a whole has suffered from a prolonged downturn in consumer spending amid inflationary pressures and broader economic uncertainty. Chinese luxury consumption has been especially hard hit.
In July, Hugo Boss cut its full-year guidance after reporting a fall in sales, notably in the U.K. and China, while Gucci owner Kering issued a weak forecast recognising a deceleration in China. LVMH revenue also fell in the second quarter on weaker sales.
Burberry’s FTSE relegation confirms a long fall from grace for the luxury fashion icon.
