Burberry and easyJet are on course to be relegated from the FTSE 100 next month following the latest quarterly review of the index’s constituents.

Marker operator FTSE Russell said it would make a final determination based on their respective share prices at the close of business next Tuesday.

Its indicative findings would also see the insurer Hiscox and Tritax Big Box – an investor in distribution centres – step up to the top flight from the lower tier FTSE 250.

Money latest: Half of young people doing ‘big no-no’ with holiday money

Burberry is the big, and frankly shocking, name to see at risk of relegation. It has been a stalwart of the FTSE 100 for 15 years.

But its market value has plunged more than 70% since April 2023, standing just below £2.6bn as of Tuesday’s close, easily making the company’s stock the worst-performing of 2024 on the FTSE 100.

Some of its problems are not of its own making.

Thousands of Next floor staff win equal pay case with supermarket workers also bringing claims

Money blog: Half of young people doing ‘big no-no’ with holiday money – here’s the golden rules

Increase in passengers behaving badly due to drugs and alcohol as Ryanair says price falls to continue

Demand for luxury, globally, has tailed off this year.

But Burberry is particularly exposed to the troubled Chinese market, one that has taken longer than expected to recover meaningfully from the end of COVID disruption despite an initial boom for sales in 2022.

Commentators have criticised Burberry’s strategy, in particular the decision to take the company further upmarket, raising prices at a time of apparent frugality among its core customer base.

The architect of that path, Jonathan Akeroyd, was ousted last month.

A replacement chief executive in former Michael Kors boss Joshua Schulman was named at the same time, alongside financial results that showed the extent of the hit to sales.

Like for like sales over the 13 weeks to 29 June were down 21% on the same period last year.

Be the first to get Breaking News

Install the Sky News app for free

Read more:
What has gone wrong at Burberry?

Burberry also suspended its dividend.

Among the other changes easyJet, for its part, has become something of a FTSE 100 yo-yo in recent years. It was last promoted in March.

In other looming moves, FTSE Russell said the additions to the FTSE 250 could include Raspberry PI, the affordable computer supplier.

Its promotion was made possible following a successful London stock market debut in June.

Related posts:

Chip shortage throws spanner in works as car industry struggles to recover from COVID crisis Virgin Active hunts successors for top execs as co-founder’s run ends National Grid expects higher profits amid growing energy bills Thousands of Reddit communities are doing dark today – here’s why Cafe Rouge owner needs bigger table for swoop on Chiquito’s and Frankie & Benny’s Metro Bank moves to reassure investors over capital-raising efforts as shares fall Metro Bank, rental prices and artificial intelligence Pepsi faces supermarket boycott in four European countries BARB ratings firm Kantar Media screens bankers for £1bn sale NatWest boss criticised for claiming it is not ‘that difficult’ to get on property ladder Apple sales slump in China as Huawei’s foldable phones gain momentum Airline passengers facing ‘nine-hour waits’ and ‘lost baggage’ a day after global IT outage