LONDON: British luxury fashion brand Burberry has been removed from the FTSE 100 index after 15 years, following a sharp decline in its share price amid a tough year for the luxury retail sector, reported PA Media/dpa news.
In the latest reshuffle on the London Stock Exchange, insurer Hiscox has been promoted to the FTSE 100, while tech firm Raspberry Pi joined the FTSE 250 after its recent market debut.
Analytics group FTSE Russell confirmed the changes, which are based on share prices at the end of the day on Tuesday, and will come into effect on September 23.
Burberry's share price has flopped by about 50 per cent over the past six months, reaching lows not seen since 2010.
The historic British brand, known for its check print and trench coats, was hit by the slow reopening of the Chinese economy after the Covid pandemic.
It has also felt the impact of a slowdown in the wider luxury sector, with demand from shoppers coming under pressure during the cost-of-living crunch.
The company replaced boss Jonathan Akeroyd after just over two years in the job in July, alongside announcing it was suspending its dividend payment to shareholders while it works to bolster its finances.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Turning things around from here is a tough task for the new chief executive, Joshua Schulman.
"His experience at brands such as Michael Kors, Coach, and Jimmy Choo should help Burberry build back up its brand desirability, but this is likely going to take considerable investment and patience."
Burberry will drop to the FTSE 250 index as a result of the review.
In its place, insurance group Hiscox has taken a spot on the FTSE 100 after seeing its share price rise by a fifth over the past year.
Meanwhile, Raspberry Pi has climbed the ranks of the London Stock Exchange and will join the FTSE 250 following the latest reshuffle.
The computer firm's shares surged in the days after it launched on the public markets, with investors keen to cash in on the business founded by computer scientist Eben Upton in 2008.
The flotation was seen as a welcome victory for the flagging UK market.
"There is now much excitement about the technology's potential as so-called "edge computing" takes off – when data is processed closer to where it's created, making things work more quickly," Ms Streeter said.
"However, with plenty of pretenders to its tiny throne, Raspberry Pi will have to work hard to stay at the front of the race."
Elsewhere, Diversified Energy Company, an oil and gas producer in the US, has been kicked off the FTSE 250 after seeing its share price drop by nearly 50 per cent over the past year.