Burberry's share price (LON: BRBY) has impressively added 13% since the start of the year, less than 2 months ago. This brings the rebound in the stock to more than 90% in less than 6 months from September lows.
The March reshuffle of the FTSE 100 could see BRBY rejoin the index, with the market cap now standing a little under £4 billion, comfortably inside the top 100 on the LSE.
The turnaround strategy, led by CEO Joshua Schulman, has been pivotal in this positive shift. Schulman's strategy, which was introduced in November, involves crucial elements like leadership changes, cost-cutting measures, and a renewed focus on outerwear. This approach has been well-received by stakeholders.
The company's strategic efforts have led to increased sales in America by 4% quarter-on-quarter and diminished losses in other regions.
The brand had previously faced challenges, including a shaky brand image and frequent leadership changes, compounded by a post-pandemic luxury sector slump. However, recent improvements in the US market and stabilization in China have buoyed luxury stocks by about 30% over the past three months. This recovery has also been attributed to the impact of Donald Trump's tax cuts and a strategic shift away from a subdued Chinese market.
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