Gobbetti has to get Burberry back on track

Gobbetti has to get Burberry back on track

Marco Gobbetti will become British luxury group Burberry's CEO next year, succeeding Christopher Bailey, who will turn his attention to the creative aspect once more.

Major shuffle

Gobbetti currently works for LVMH, as Céline's managing director. Previously, he was managing director for Givenchy (also an LVMH brand) and Moschino and he was also Bottega Veneta's sales director for the United States. Contractual obligations prohibit Gobbetti's immediate arrival.

 

Current CEO, Christopher Bailey, has been in charge since October 2013, combining the job with the position of Chief Creative Officer, a position he will keep once Gobbetti arrives. He will also take on the responsibility of looking after the brand and design. Both Bailey and Gobbetti will report the chairman of the board, John Peace.

 

Gobbeti's appointment is not the only change within Burberry's ranks: early next year, Julie Brown will be the company's operational and financial director, when current financial director, Carol Fairweather, leaves. Currently, Brown is financial director with medical company Smith and Nephew.

 

Disappointing results

Gobbetti's appointment is part of a strategic shuffle at Burberry, as it struggled over the past few months. Slower Chinese economic growth has slowed down the demand for luxury items, while the Paris attacks have also hit the tourist industry quite hard.

 

Burberry's turnover for its past fiscal year, which ended on 31 March, dropped slightly to 2.5 billion pounds. Net profit dropped from 336 million euro to 310 million euro.