Burberry and EasyJet are on the verge of being relegated from the FTSE 100 as part of the upcoming September review by the London Stock Exchange Group. This potential shift, highlighted in the LSEG’s preliminary assessment, reflects the ongoing financial challenges faced by both companies. Burberry has struggled with strategic shifts, including a move towards a more upscale market and the recent suspension of its dividend. Additionally, declining demand in China has further pressured the luxury brand, contributing to a significant drop in its stock value.
On the other hand, EasyJet is contending with the adverse effects of price wars driven by last-minute bookings, which have strained its earnings expectations. The airline industry’s cyclical nature has seen EasyJet’s stock value fluctuate, placing it on the brink of exiting the FTSE 100. The final determination of index changes will be made on September 4, with both companies potentially transitioning to the FTSE 250 index if the preliminary assessment is confirmed.
