More flagship stores

So far, Burberry has about 60 stores in around 30 cities in China. Most of the stores are located in first-tier cities, including nine in Beijing, five in Shanghai and eight to nine in other tier one cities.

"We are still investing heavily in the big flagship markets in China. In the next three years or so, we will have around 100 stores in China. But that's net, because every year, the market is evolving in China. With all the big developments, we are closing some of the smaller and older stores and opening 10 to 15 flagship stores each year," said Ahrendts.

Although some luxury brands are expanding into China's smaller cities, betting on the potential of the consumption power in these cities, Ahrendts said Burberry intend to focus on the 30 cities that the company is already in, in line with its global focus on flagship markets.

"We may open one to two 3,000 square feet mainline flagship stores in one of those tier two cities. We are not aggressively going beyond the 30 cities we are already in," said Ahrendts.

"In fact, we are already more widely distributed than most of the luxury brands in China," she added.

According to Ahrendts, Burberry manages its investments on a regional basis.

"The region receiving the most money is definitely Asia. China is definitely one of the top three markets globally where we are spending this year," she said.

Besides China, Burberry has also invested in London this year in preparation for the London Olympics. The United States is also one of the key markets for the company.

The biggest challenge

According to Ahrendts, the biggest challenge that Burberry faces today is how to maximize or optimize the opportunities the company has created for itself.

"We have tremendous brand momentum. The luxury sector is trending very nicely. We have teams of people all over the world. It is really how much and how fast we can move every year," said Ahrendts.

The company told its investors that Burberry will add more than 10 percent growth in real estate every year and nearly double the capital spending this year on opening new stores and investing in technology. Currently, Burberry operates in 80 different markets all over the world.

"We are spending up to 200 million pounds ($350 million) this year. We are investing in stores and technology. The great news is that the brand has such momentum and the sector has such momentum. The greatest challenge is optimizing this moment and uniting the team to move as rapidly as we can to secure the best locations in flagship markets," said Ahrendts. "All over the world, we are investing in flagship cities."

It is really hard to get a corner location in a flagship market, but Burberry got a corner location in Shanghai and Beijing and has had equal success in other key markets.

"We have a great corner location under construction in London and also one in Chicago," she said.

Family always first

For Ahrendts, family is the most important thing even though she has been successful in her career.

"I have a big family which includes my husband, three kids and two big dogs. I love to read, I love to travel and I love to shop. But it is always my family first," she said.

"As a working woman, you have to have balance. Yes, I have to keep Burberry strong for the next 150 years. But my kids are my personal legacy," she stressed.

Today, all the clothes Ahrendts wears are Burberry. "I should be Burberry's customer. I absolutely live in the product and I want to. Five years ago, my children did not. But now they love the brand, and my mother also loves the brand," she said.

"The most important thing is that the number one goal for Christopher Bailey and his 70 designers in London is to make the most beautiful and modern clothes.

"Sometimes when business gets so good, people do forget that, but what really drives Burberry's growth today are the great and innovative products," she said.