Photo: European Pressphoto Agency
LONDON— Burberry Group PLC on Monday made extensive changes to its top ranks as it seeks to come falling sales, naming extravagance- Chief Executive Christopher Bailey to be replaced by business expert Marco Gobbetti.
Mr. Bailey, who has weathered pointed criticism and a heavy stock decline during his two years as CEO and chief creative officer of the British fashion label, will stay with Burberry as creative leader and president, a new name.
The firm is also replacing its chief financial officer, Carol Fairweather, with Julie Brown the finance chief of medical device company Smith & Nephew PLC. Ms. Brown is known for having powerful restructuring and cost-economies expertise.
Burberry said Mr. Gobbetti will start sometime next year, as soon as he’s contractually capable to do thus. Ms. Brown will begin as CFO in early 2017.
By comparison, on Monday, Burberry’s shares soared 4.2% to close at £12.11 ($15.68), representing the building investor disquiet that’s encompassed the 45-year old Mr. Bailey’s two-pronged job.
He’s worked on brands like Givenchy, Moschino and Bottega Veneta for the previous 20 years, in extravagance.
Burberry’s surprise statement comes after the firm has found sales beaten in key markets including Greater China and the U.S. for a sequence of quarters.