We’ve heard that Burberry chairman Sir John Peace did his very best to persuade Angela Ahrendts to continue as Chief Executive, knowing full well the likely adverse impact on the share price. But the joint lures of Apple and homeland were too strong for him and her. Christopher Bailey is to be promoted to the new role of Chief Creative and Chief Executive Officer and the share price duly fell amidst City scepticism.
No doubt one of the first big challenges the new man in charge will face is the spectre raised by Ahrendts in one of her last public statements as Burberry CEO. In it she expressed concerns to newspaper Les Echos that China’s slowdown could be more than just a passing phase for the luxury goods sector. Given the importance to Burberry of its business in China this would undoubtedly put pressure on the short term balance sheet.