Burberry shares fall after CEO Marco Gobbetti announces departure

Shares in Burberry fell yesterday after CEO Marco Gobbetti announced he was to quit the British fashion brand to return to his native Italy.

The sudden move not only means that the company is losing a highly successful industry veteran, but has sparked concerns among investors that other executives could follow suit in the coming months.

Shares in London-listed Burberry dropped almost 10% yesterday, wiping almost £1 billion off its market capitalisation, as investors responded to the shock exit.

Gobbetti has been at the forefront of Burberry since 2017, leading the company’s turnaround, increasing its popularity with a younger audience and expanding into higher-margin categories.

The board will start its search for a successor, with Gobbetti staying in post until the end of the year to enable an orderly transition.

Chairman Gerry Murphy said Gobbetti “has had a transformative impact and established a clearly-defined purpose and strategy, an outstanding team and strong brand momentum”.

He added: “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.