Burberry's comeback started by walking away from profitable sales.
Burberry's turnaround was a repositioning: it stripped the check from all but about 10% of products and took licenses back. Over the Ahrendts tenure, revenue grew 102% and operating profit 82%.
Transcript
Burberry's famous comeback is usually told as a rescue. The record shows a company walking away from money it was making.
When Angela Ahrendts became CEO in July 2006, the low-end check business was profitable. It also eroded Burberry's permission to charge luxury prices.
She and Bailey stripped the check from all but about 10% of products, took fragrance and beauty licenses back in-house, and bought out the Spanish franchise.
Over her tenure, Burberry's revenue grew 102% and operating profit 82%. The company's value rose from about £2bn to over £7bn.
Some revenue costs more than it pays. Before keeping a profitable line, ask what it does to your price. And comebacks do not stay won: in May 2025, Burberry announced plans to cut up to 1,700 jobs.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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