British luxury fashion house Burberry is poised to rejoin the UK's premier FTSE 100 index this month, just one year after its relegation from the blue-chip benchmark, according to an announcement from index provider FTSE Russell.

The promotion, part of a scheduled quarterly review by the London Stock Exchange Group, coincides with the heritage brand's efforts to regain market traction under a comprehensive strategic overhaul. Following the news, Burberry's shares experienced modest pressure, trading approximately 0.8% lower in late morning London trading.

A Rapid Reversal of Fortune
The luxury group's exit from the FTSE 100 in September 2024 concluded a 15-year tenure within the UK's large-cap index. Its return, effective after the market close on September 19, will see it alongside Metlen Energy & Metals. This swift re-entry marks a significant corporate milestone. Meanwhile, Homebuilder Taylor Wimpey and student accommodation specialist Unite Group are set to exit the top index and move to the FTSE 250.

The comeback follows a period of steep decline, with Burberry's share price plummeting nearly 80% between April 2023 and September 2024. This was driven by waning sales, management instability, and a broader downturn affecting the luxury sector, a challenging landscape for any established player to navigate.

Early Green Shoots Under New Leadership
However, early signs suggest the turnaround plans initiated by CEO Joshua Schulman, who took the helm in July 2024, are beginning to yield results. The 169-year-old retailer, iconic for its trench coats and signature check, reported a resilient first-quarter performance in July. Sales declined by a better-than-feared 1% year-on-year, supported by a noticeable uptick in demand from both US and European markets.

Schulman's strategy focuses on doubling down on the brand's timeless core offerings while executing a rigorous cost-cutting program. The company confirms these measures are on track to deliver £80 million in annualized savings by the end of the 2026 financial year, a critical step in its journey back to stable growth and a strong market position.