Burberry stock prices fell after CEO Marco Gobbetti’s departure from the fashion house was announced. The stocks fell by around 8 per cent on Monday.
Gobbetti is expected to join Italian rival Salvatore Ferragamo at the end of the year. Ferragamo shares didn’t see much of a change.
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Commenting on Gobbetti’s move, Burberry Chairman 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.”
Gobbetti is credited with refashioning Burberry by bringing in Italian designer Riccardo Tisci in 2018 to help take the brand a notch higher and offer more upscale streetwear options. Gobbetti also made Burberry more appealing to younger shoppers by raising prices and producing high-margin products like handbags.
But, Gobbetti wasn’t without his share of controversies. Under him, the brand is said to have burned $36.5 million worth of unsold inventory in 2017.
Gobbetti will assume responsibility at Ferragamo as soon as he is released from Burberry’s “contractual obligations.” In his new role, Gobbetti is faced with the challenge of increasing the brand’s visibility in the era of social media fashion.
Gobbetti led luxury brands like Givenchy and Céline before joining Burberry in 2017.