Burberry dropping out of ‘FTSE 100 with a 15-year low of stock will attact takeover talks’

It’ll take more than a quarter to get the ship back on course but today definitely shows promise.

It’s still early doors for Schulman’s ‘Burberry Forward’ initiative but getting back to basics is showing green shoots of progress, with a nod to H2 results hopefully being able to offset H1 losses.

November’s update was a call to arms and said all the right things about a return to ‘timeless British luxury’, leading with outwear, making fewer, bigger investments and reviving a high-performing culture.

Rebuilding the brand in a tough market will be a slog but a very necessary one, given how much BRBY is lagging its luxury peers.

It does look like the point of maximum pessimism is behind it though and getting back to what it’s known for certainly chimed with investors in the final stretch of 2024.

Takeover talk

Dropping out of the FTSE 100 amid a 15-year low for the stock, will naturally have attracted takeover talk but that’s gone quiet recently.

If a bid does come in, from Moncler or otherwise, it’s likely to be either on the back of evidence that the latest strategy refresh is working and the stock doesn’t yet reflect that, or on proof that it’s a disaster and a buyer could swoop in and fix it themselves.

An opportunistic deal will look less attractive the more Burberry’s strategy, and share price, show sustained promise. If something is brewing, it’s likely to be more thoughtful than it would have been during September lows and means now is likely the time a buyer needs to come out of the woodwork, before it’s too late and the turnaround really starts to motor.

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