London (AFP) – British luxury fashion label Burberry rejoined London’s FTSE 100 on Monday, one year after exiting the top-tier stock index, and ahead of unveiling its latest collection at London Fashion Week. The company is in the midst of a turnaround plan aimed at boosting sales and cutting costs as the global luxury sector struggles with weak consumer demand, notably from China, and the impact of US tariffs.
Burberry, vowing to win back customers with its signature outerwear, including its famed trench coats, will close out London Fashion Week on Monday evening with its runway show. Investors were cautious on Monday, with shares in the company falling around one percent in morning deals. Still, Burberry’s stock has staged a significant rebound recently, soaring 86 percent in the past year.
After 15 years on London’s benchmark index, it was relegated in September 2024 to the FTSE 250, with analysts citing strategic mistakes and weak demand from China. Chief executive Joshua Schulman, who replaced Jonathan Akeroyd last year, has initiated a drastic cost-saving plan which could impact around 18 percent of its workforce, or 1,700 people.
While the brand fell into a net loss in its most recent annual results, there have been early signs of recovery in its quarterly earnings. Founded in 1856, the company boasts a strong legacy to rely on. It was awarded a royal warrant by Queen Elizabeth II in 1955, a stamp of approval on its quality.
© 2024 AFP
