Reuters Burberry boss Marco Gobbetti is leaving the company to return home and take the helm of Italian luxury goods group Ferragamo, casting a pall over the British fashion brands revamp.
Gobbetti has been credited with boosting Burberrys market value by a third as he has taken the brand further upmarket. Concern that his departure will undo some of that progress sent its Londonlisted shares tumbling as much as 10 in early trade while Ferragamo rose 2.3 in Milan.
Burberry recovered some of those losses to trade down 7.7 at 20.80 pounds. Ferragamo reversed early gains and was down 1.5 down at 19 euros, with one trader citing reduced likelihood of a takeover after Gobbettis appointment.
The board and I are naturally disappointed by Marcos decision, but we understand and fully respect his desire to return to Italy after nearly 20 years abroad, Burberry Chairman Gerry Murphy said in a statement.
Ferragamo, which became famous for shoes worn by Hollywood stars such as Audrey Hepburn, said Gobbetti would take up his new position once released from his contractual obligations.
Burberry said it will now begin the search for the 62yearold executives successor.
Known for its trench coats and trademark plaid, Burberrys strategy shift under Gobbetti injected fresh life into its ranges, helped by his 2018 recruitment of star designer Riccardo Tisci, a fellow Italian and former colleague at Givenchy.
With Burberry reenergised and firmly set on a path to strong…