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By
Reuters
Published
Jan 16, 2017
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Burberry new CEO to join next week, will get to know business for six months

By
Reuters
Published
Jan 16, 2017

Marco Gobbetti, recruited last year from French brand Céline to be the new chief executive of Burberry, will start work next week and take on full responsibilities in July, the British luxury goods company said on Monday.

Italian Gobbetti was named as Christopher Bailey's successor as Burberry CEO last July but contractual obligations have prevented him from taking charge so far.


Burberry winter 2016-17 - Spring-Summer2017 - Womenswear - Londres - © PixelFormula



Gobbetti arrives at a difficult time for Burberry which rebuffed a takeover approach from US rival Coach last year according to reports.

Burberry, scheduled to update on Christmas trading on Wednesday, said Gobbetti would start at the firm on January 27 as executive chairman, Asia Pacific and Middle East.

He will not become CEO and join the board until July 5 when Bailey will take on the new role of president and chief creative officer.

The Asia Pacific and Middle East position was created for him by Burberry to enable him to get to know the business before becoming CEO, the firm said. His arrival will allow Bailey to focus again on the design role that made his name.

Burberry has suffered from depressed demand at US department stores and is exposed to any slowdown in China, with the Chinese consumer accounting for 40% of its global retail sales.

It has however been boosted by tourists taking advantage of the weaker pound to spend more in its London stores and the translation benefit when converting overseas revenues to sterling.

Foreign exchange benefits have helped to drive a 46% rise in its shares over the last year. Analysts are forecasting a 25% rise in third quarter sales to £752m, with like-for-like sales up 2%.

Barclays highlighted the social media success of a tie-up with pop star Kris Wu as auguring well for progress in China.

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