Burberry's Blue-Chip Revival: Iconic British Brand Set to Rejoin FTSE 100

London, September 2025 — Burberry is on the cusp of reclaiming its place in the FTSE 100, marking a powerful symbol of revival for one of Britain's most storied luxury houses. The official inclusion will take effect after the close of trading on September 19, with Burberry shares formally re-entering the index on September 22. This milestone reflects the brand's position among top British luxury fashion brands and demonstrates the resilience of heritage luxury houses in challenging markets.

What's Powering the Turnaround

Once relegated to the FTSE 250 in late 2024, Burberry has staged an impressive rebound under CEO Joshua Schulman, whose disciplined vision has reignited investor faith and market performance. The brand's resurgence is being fueled by:

• Heritage Re-Emphasis: Outerwear is back in the spotlight, especially the tartan trench coat and signature scarves that have long defined Burberry's DNA.
• Cost Optimization: A bold restructuring plan, including up to 1,700 job reductions, aims to save £60 million by 2027.
• Sales Momentum: Stronger comparable store sales and healthier inventory management are signaling stability across key geographies.
• Brand Elevation: Streamlined design-to-market processes and sharper campaigns have strengthened Burberry's desirability among global luxury buyers.

This strategic approach aligns with Burberry's history of innovation, including their early adoption of machine learning and new technology to enhance their luxury operations. The brand has also leveraged gaming technology to enhance fashion designing, demonstrating their commitment to digital innovation.

Importantly, Burberry's turnaround strategy prioritized employee welfare during challenging times, as the company ensured full payment to employees during the crisis, building loyalty and maintaining operational continuity that has contributed to their current success.

Why This Matters

Re-entry into the FTSE 100 brings both prestige and practical upside. Beyond boosting Burberry's symbolic stature, the move ensures automatic inclusion in passive funds and ETFs tracking the benchmark—potentially spurring liquidity and long-term investor inflows. This development reflects broader trends in luxury market recovery following economic challenges.

The recovery also demonstrates how heritage brands can successfully navigate industry consolidation and market pressures through strategic focus and operational excellence.

Strategic Innovation and Partnerships

Burberry's revival has been supported by strategic innovation initiatives and high-profile collaborations. The brand has embraced digital transformation, including their pioneering work with non-fungible tokens (NFTs) in partnership with Mythical Games, positioning them at the forefront of luxury's digital evolution.

Additionally, Burberry has maintained cultural relevance through strategic partnerships, such as their collaboration with American lifestyle brand Supreme, bridging heritage luxury with streetwear culture to attract younger consumers.

The brand has also adapted to changing market conditions by embracing digital showcases, including hosting digital fashion shows that maintain engagement while optimizing costs and reach.

Snapshot at a Glance

The Bottom Line

Burberry's return to the FTSE 100 is more than a financial milestone—it's a vote of confidence in the brand's ability to balance heritage with modern relevance. With sharpened strategy, fiscal discipline, and elevated consumer resonance, Burberry's turnaround is not just about rejoining the blue-chip club—it's about securing its place as a resurgent force in global luxury fashion.

This recovery serves as a case study in luxury brand evolution, demonstrating how traditional houses can adapt to changing market conditions while preserving their core identity. Burberry's success also reflects broader industry trends, including the importance of artificial intelligence and technology adoption in modern luxury operations.

As Burberry reclaims its blue-chip status, the brand's journey offers valuable insights for other luxury houses navigating market volatility, proving that with strategic focus, operational discipline, and respect for heritage, even the most challenging periods can become catalysts for stronger, more resilient growth.