Burberry Group PLC (LSE:BRBY) shares continue their terminal decline with another 5% knocked off the British luxury label on Monday morning to test 15-year lows as a Barclays downgrade added to recent woes.
The fashion house, which at 571p per share is retracing to lows not seen since November 2009, has been confirmed as the only company to be relegated from the FTSE 100 at the next quarterly reshuffle on 23 September.
The company has hit roadblock after roadblock amid a sluggish global rebound in the luxury sector, a departing chief executive and a suspended dividend, all of which have led to a dramatic repricing of the stock.
Barclays analysts added fuel to the fire by downgrading Burberry shares to 'underweight'.
"Despite already being one of the worst-performing names in our space, we still see downside as we have concerns around the ability of Burberry to remain a high-end luxury brand in line with our coverage considering its lack of disciplined full-price strategy," the analysts wrote.
Burberry is "likely" to turn loss-making for the first time in the first half of the current financial year, "and considering that we expect the environment to remain tough next year, it could be difficult to see margin recovery in the short term", the Barclays team added.