28th Jun 2021 09:11
(Alliance News) - Burberry Group PLC Chief Executive Marco Gobbetti is set to quit to join rival luxury goods maker Salvatore Ferragamo Spa, the two companies said on Monday.
Shares in Burberry were down 9.3% to 2,040.00 pence in London, making the worst performer in the FTSE 100 index. Shares in Ferragamo were up 1.4% to EUR19.57 in Milan.
Gobbetti has been at the helm of Burberry since July 2017, during which he "led the transformation of Burberry's brand and business", the London-based company said. He is expected to remain in his current role until the end of 2021, while Burberry searches for a successor.
During his time at the company, Gobbetti switched its strategy away from discounts towards well-marketed, full-price items. Its share price had jumped 37% from when he joined to Friday's close.
He also dealt with the fallout from the pandemic on the luxury industry, and a Chinese boycott over Burberry's membership of the Better Cotton Initiative, which suspended purchases from Xinjiang over allegations of forced labour.
Ferragamo said Gobbetti, who was paid GBP2.3 million last year by Burberry, will become general manager and chief executive officer. He will take up his position as soon as he is released from his contractual obligations at Burberry.
Ferragamo noted that Gobbetti is "an Italian manager with a long and relevant professional career in the luxury and fashion sector".
Founded in 1927, Ferragamo sells high-end shoes, leather goods, apparel, silk products and other accessories, along with women's and men's fragrances.
Burberry Chair Gerry Murphy said: "The board and I are naturally disappointed by Marco's decision but we understand and fully respect his desire to return to Italy after nearly 20 years abroad.
"With the execution of our strategy on track and our outlook unchanged, we are determined to build on Burberry's strong foundations to accelerate growth and deliver further value for our shareholders."
Gobbetti said: "With Burberry re-energised and firmly set on a path to strong growth, I feel that now is the right time for me to step down."
By Ivan Edwards; [email protected]
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