Burberry Set to Exit FTSE 100 Index

Burberry is set to be demoted from the FTSE 100, ending its 15-year presence in the index, due to a significant drop in share prices amidst a global slowdown in luxury demand. Its shares have plummeted by nearly a third over the past three months, leading to a market capitalization of £2.5 billion, which positions it 140th in the FTSE 350 and well below the 111 threshold required to remain in the FTSE 100. The luxury retailer's struggles are compounded by a recent profit warning and the departure of its CEO, Jonathan Akeroyd, after only two years. Newly appointed CEO Joshua Schulman faces the challenge of revitalizing the brand as affluent consumers cut back on high-end purchases. Market analysts predict that Burberry's demotion could pressure its share price further, as index funds will automatically sell off shares following the index shake-up announcement. Final changes to the FTSE 100 will be disclosed on September 4, with Hiscox expected to take Burberry's place in the index.