Angela Ahrendts May Delay Start Date With Apple

Updated on

Six months ago, Apple Inc. (NASDAQ:AAPL)’s chief executive officer Tim Cook announced Burberry Group plc (LON:BRBY) (OTCMKTS:BURBY) executive Angela Ahrendts would join the Apple team sometime in early 2014.


Gates Cap Management Reduces Risk After Rare Down Year

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy Read More

Ahrendts might delay her start with Apple

Ahrendts was originally supposed to start her position as senior vice president of retail and online stores this spring, but she still has some obligations to fulfill at Burberry.

According to The Guardian, the British fashion brand has yet to confirm her official exit date. Although she is free to leave sometime this month, it was reported she made a promise to stay on until the middle of the year. This is to smooth over the transition to her successor. If she remains with the company until early June, she would collect her 2 million pound bonuses.

Possible benefits from the delay

Although the delay is not exactly the best thing for Apple Inc. (NASDAQ:AAPL), it should reassure investors. Neev Capital analyst Rahul Sharma explained, “It’s a big sum of money. In some ways it would be good to see the business moving on after six months of handover time. You want to see clarity. That is a big concern in the back of investors’ minds and Ahrendt’s presence delays that point of judgment.”

Another benefit of Ahrendt’s later exit is that she could complete Burberry’s plan to take back the Japanese license before the renewal next year. This move is expected to be officially announced during Burberry’s yearly announcement next year. It will be a significant change in a key market that sells a variety of products in Europe and China.

Apple Inc. (NASDAQ:AAPL)’s Worldwide Developer’s Conference (WWDC) will be held on June 2nd. Fortunately, Ahrendt’s expertise won’t be needed at that particular event. Ahrendt will keep her focus on branding Apple as a luxury tech company. Her experience with Burberry can easily translate into better sales for Apple, which is something the company wants more of.

Subscribe to ValueWalk!

Get updates on the latest posts and more from ValueWalk straight to your inbox.