Does Salvatore Ferragamo want a slice of Burberry’s millennial success? After a Kendall Jenner-fronted Instagram campaign, now CEO Marco Gobbetti is leaving for the brand’s Italian competitor

Jun 29 , 2021

Burberry presented its spring/summer 2021 show outdoors with a theme centred on regeneration and constant evolution – now the brand is forced into its own evolution with news that its CEO, Marco Gobbetti, is moving to Ferragamo. Photo: Burberry

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Burberry Group CEO Marco Gobbetti will leave at the end of this year to take up the top post at Italy’s Salvatore Ferragamo, shifting from a luxury brand in the middle of a turnaround to another that’s seeking to embark on one.

The move to Ferragamo will allow Gobbetti to return to his native Italy after a long time of working abroad, including almost five years leading the British label. But it casts a cloud over the direction of Burberry, which has undergone a rebranding and been tapping social media buzz to attract younger luxury shoppers.

Burberry CEO Marco Gobbetti, soon to be joining Salvatore Ferragamo. Photo: Burberry

Ferragamo shares were little changed in Milan on the news on June 28, while Burberry fell 6.3 per cent as of 11am London time after sliding as much as 10 per cent earlier.

Monday’s announcements point to a sudden decision, said Flavio Cereda, an analyst with Jefferies, a financial services company. Burberry’s board found out on Sunday about Gobbetti’s decision, according to a person familiar with the matter.

Close to designer Riccardo Tisci

Designer Riccardo Tisci at the Burberry autumn/winter 2020-21 show in London in February 2020. Photo: Burberry

At Burberry, Gobbetti brought in Italian designer Riccardo Tisci to oversee a revamp of the trench coat maker, aimed at moving the brand image further upmarket. He also bought an Italian leather-goods maker to develop Burberry handbags.

“Burberry is in a far better position today than when Marco took responsibility for it,” Sanford C. Bernstein analyst Luca Solca said in an email. “Yet the magnitude of the issues at hand didn’t offer a chance for the runway success that some had hoped for.

“Marco takes on another monumental challenge by becoming the CEO of Ferragamo. The brand needs a thorough rejuvenation of its marketing fundamentals.”