Burberry CEO Marco Gobbetti to leave luxury brand by year-end

London

BURBERRY Group chief executive officer Marco Gobbetti will leave at the end of this year to take up the top post at Italy's Salvatore Ferragamo, shifting from one luxury brand in the middle of a turnaround to another that's seeking to embark on one.

The Italian executive spent almost five years at the helm of the British label, and the board will now begin the search for a successor, according to a statement on Monday. The move to Ferragamo will allow him to return to Italy after years working abroad.

Ferragamo shares rose 2 per cent early Monday in Milan, while Burberry fell as much as 7.5 per cent.

Ferragamo has struggled more than its peers in attracting a younger generation of luxury shoppers. The Italian brand named Paul Andrew creative director in 2019 but he stepped down earlier this year.

It's likely Mr Gobbetti will be in charge of naming a creative director who will shake up the brand once he's at the helm of Ferragamo.

At Burberry, Mr Gobbetti brought in Italian designer Riccardo Tisci to oversee a revamp of the trenchcoat maker, aimed at moving the brand image further upmarket. He also bought an Italian leather-goods maker to develop Burberry's handbag offerings.

"Burberry is in a far-better position today than when Marco took responsibility for it," Sanford C Bernstein analyst Luca Solca said. "Yet the magnitude of the issues at hand didn't offer a chance for the runway success that some had hoped for. Marco takes over another monumental challenge by becoming the CEO of Ferragamo. The brand needs a thorough rejuvenation of its marketing fundamentals: product and communication, first and foremost."

Mr Gobbetti will work with chairman Gerry Murphy to provide support to the leadership team on an "orderly transition", the company said. BLOOMBERG