• The Wall Street Journal (subscription required), Thursday, May 24, 2007 1 PM

Last July, new Burberry CEO Angela Ahrendts asked CFO Stacey Cartwright for a report on what each of the company's products contributed to the business. Its findings: 80% of Burberry's sales came from 20% of its wares. As a result, Ahrendts is reducing the number of Burberry' products to some 4,200 styles a year from around 6,000.

That's a big change. Ahrendts' predecessor, Rose Marie Bravo, who arrived as CEO in 1997, turned the languishing brand into a fashion leader by splashing Burberry's traditional beige, black and red plaid check on a myriad of products. The new image -- marked by an ad showing Kate Moss in a Burberry-check bikini -- sent sales soaring.

But by 2006, the company's image suffered as the iconic plaid appeared on counterfeit goods and sales growth had softened to 3% from the previous fiscal year. Sales in the 2007 fiscal year ending March 31 rose a little more than 14% from the previous year, to around $1.7 billion. Ahrendts credits new stores, strong sales of Burberry's spring collection, and a push into high-margin accessories

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