British luxury fashion house Burberry Group dropped out of the U.K.'s FTSE 100 on Wednesday, as waning sales and management changes added to the pressures facing the 168-year-old retailer.
LONDON, UNITED KINGDOM - 2020/07/16: Storefront of the Burberry store in the prestigious New Bond Street. stock market index on Wednesday, as waning sales and a slew of management changes have added to the mounting pressures facing the 168-year-old retailer.The changes will be implemented at the close of trade on Sept. 20 and will take effect from Sept. 23.
However, the gradual adoption of Burberry's iconic pattern by the British working class through the 1990s and 2000s dealt a heavy blow to the brand's high-end aesthetic — one from which it has struggled to recover.Edward Berthelot | Getty Images Entertainment | Getty Images Analysts are now warning that further share price declines could be expected in the absence of a significant reset. "Current trading trends point to soft brand momentum for the Burberry brand which in our view needs to be addressed soon enough for Burberry to contain any further market share losses," RBC analysts Piral Dadhania and Richard Chamberlain wrote in a July note.