Burberry's Angela Ahrendts, one of only three female chief executives in the FTSE 100, is to quit the fashion group to lead tech giant Apple's retail division. Christopher Bailey, already Burberry's creative director, will take over as CEO when Ahrendts departs.
Since Ahrendts took over in 2006, shareholders have enjoyed a total return of 354%, seven times better than that of the FTSE 100. Burberry's shares fell by 7% on the news.
What the commentators said
It's also clear why Apple was keen to grab her, as John Jannarone pointed out in The Wall Street Journal. She has made Burberry "the most digitally savvy company in luxury". She has also "rolled out the brand" in emerging markets such as China, where Apple is hoping to expand.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Hiring Ahrendts is part of Apple's attempt to be seen as a "luxury lifestyle" company, not just a "technology innovator", added David Godber of design consulting firm Elmwood.
Harder to understand, however, is why Burberry thinks Bailey can do two jobs at the same time, said Nils Pratley on Theguardian.com. His dual role "is an outright gamble that a superstar designer can manage both the product and the company". No other retailer does things like this, and no wonder.
It makes no sense, for instance, for Next's Simon Wolfson to "spend less time worrying about capital allocation and more time designing dresses".
What's more, with China slowing, maintaining Burberry's pace will be a big ask, said James Moore in The Independent. Ahrendts' exit demonstrates another key trait of successful CEOs: knowing when to leave.
-
Are you one of 15 million people at risk of retirement poverty?Two-fifths of people in the UK aren’t on track for a minimum lifestyle in retirement, new data shows. Are there steps you can take to boost your pension?
-
150 banking hubs now open across UK – is there one near you?As the 150th banking hub opens its doors, a Post Office deal that offers basic banking services has also been extended until 2030. We explain what this means for you
-
Burberry: a trophy assetFeatures Burberry is a trophy asset, says Alex Williams. But the fashion house would be a brave buy.
-
Profits up for Burberry as it aims to ‘unlock’ JapanFeatures Luxury goods maker Burberry announced a healthy rise in profits in the wake of its chief executive’s departure.
