Burberry has been removed from the FTSE 100 index of the London Stock Exchange for the first time in 15 years.
According to AFP, on Wednesday, FTSE Russell announced that Burberry would be dropped from the FTSE 100 index following its quarterly review starting on the 23rd. Insurance company Hiscox will take its place.
The FTSE 100 index includes the 100 largest companies by market capitalization listed on the London International Stock Exchange (LSE) and is updated quarterly.
Burberry’s stock price has plummeted by over 70% in the past year, making it the worst performer in the FTSE 100.
Currently, its market capitalization stands at £2.34 billion (approximately $3.1 billion), which is lower than that of the leading companies in the FTSE 250 index.
Burberry will join the mid-cap FTSE 250 index alongside tech company Raspberry Pi.
With its 168-year history, Burberry has recently experienced a significant drop in stock price due to a slow recovery from COVID-19 lockdowns and rising living costs. The brand is famous for its iconic check pattern and trench coats.
In response to these challenges, Burberry suspended its dividend payments to shareholders in July and appointed Joshua Schulman, formerly of Michael Kors and Coach, as its new CEO.
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