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. Spread the love: 11 luxury fashion brands celebrating Pride Month 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. 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. The best outfits from Kate Middleton’s Scotland tour (and beyond) Close to designer Riccardo Tisci 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. Gaga to Dior: 5 yellow diamond pieces for autumn “Marco takes on another monumental challenge by becoming the CEO of Ferragamo. The brand needs a thorough rejuvenation of its marketing fundamentals.” Ferragamo, whose shoes were favourites of Hollywood actresses like Audrey Hepburn and Joan Crawford, has struggled more than most peers to appeal to a new generation of consumers. The Italian brand named Paul Andrew creative director in 2019, but he left earlier this year. Gobbetti will probably “look to hire a high-calibre individual to lead the design function and rejuvenate the Ferragamo sleeping beauty”, Thomas Chauvet, analyst at Citigroup wrote in a note. “Time will tell whether Tisci joins his former boss at Ferragamo next year.” Formerly CEO of Moschino, Gobbetti spent 13 years at LVMH, where he ran Givenchy and Celine before taking up his current position at Burberry. At Givenchy, Gobbetti also brought in Tisci in the top creative role. K-pop’s most fashionable men: who’s wearing what? An awkward transition? View this post on Instagram A post shared by Kendall (@kendalljenner) Like Ferragamo, Burberry was struggling to attract the Instagram crowd when Gobbetti took over. The British company recently launched a campaign featuring Kendall Jenner showcasing the Olympia handbag. Gobbetti’s success in improving this crucial category may have made him more appealing to the Italian company. 5 fringed handbags that’ll flaunt your style like Kendall Jenner Still, Burberry has trailed luxury rivals like LVMH and Kering in recovering from Covid-19 lockdowns, with sales remaining below 2019 levels in the latest quarter. Gobbetti will provide support to the leadership team on an “orderly transition” at Burberry, the company said. Questions also remain regarding Ferragamo: notably what will happen to current CEO Micaela Le Divelec Lemmi, who’s been at the helm for almost three years. Her name wasn’t mentioned in Ferragamo’s statement. An extraordinary meeting of the board is scheduled for July 1. Is Cruella the most stylish film of 2021? Investors will be interested to find out how much Gobbetti will get paid at the Italian brand, having made £2.25 million pounds (US$3.13 million) at Burberry last year. Want more stories like this? Sign up here. Follow STYLE on Facebook , Instagram , YouTube and Twitter .