These changes will come into effect by mid-2014, though the news has slightly taken the investors by surprise with The Telegraph reporting share prices dipping by 5pc this morning after the news broke.
Burberry released a video featuring Bailey, Ahrendts, and the brand's chairman, Sir John Pearce, discussing this momentous news. The trio take great pains to emphasize that this is a decision that benefits the business as well as the individuals it has directly touched. As Bailey says in the accompanying press release, "I am profoundly moved and humbled to be asked to take on the CEO role at this company that means so much to me. I also feel privileged to be keeping my role as chief creative officer, as I believe that creativity and innovation have been at the heart of our success in the last ten years, and will be even more so in the decade ahead. We have a clear strategy to build on, an increasingly powerful brand and an inspiring management team. Together, we will continue to push the boundaries of design, technology, and communication while never forgetting our heritage, our Britishness and our values." Watch the video below and let us know what you think — does the future of Burberry look bright?