(CNN) British luxury fashion house Burberry’s Chief Executive Officer Marco Gobbetti is set to leave the company to lead rival Salvatore Ferragamo.
Burberry said Gobbetti will step down at the end of 2021 after nearly five years with the company. He will take up an offer in Italy where he will be closer with the family.
Burberry Chairman Gerry Murphy said the board understood Gobbetti’s wish to return to Italy after two decades overseas, but was “naturally disappointed.”
Gobbetti, who led the turnaround of the company’s brand and business. said he felt it is the right time to step down with Burberry “re-energized.”
Salvatore Ferragamo separately said Gobbetti will serve as its Chief Executive Officer once contractual obligations are fulfilled. Ferragamo shares climbed in early trading but fell by the afternoon.
Analysts believe the change in leadership could bring another reset for Burberry.
BRBY is down 8.80%, while SFER is down 2.31%.
