Burberry shares tumble as CEO Marco Gobbetti leaves to join Salvatore Ferragamo

London (CNN Business)Marco Gobbetti, who led a turnaround at Burberry, will leave the British luxury fashion label at the end of this year to return to Italy where he’ll head up rival Salvatore Ferragamo.

Burberry (BBRYF) announced Gobbetti’s resignation in a statement on Monday, sending the company’s share price as much as 8% lower in London. The stock was last trading 7% below its Friday close.”Marco, who has led the transformation of Burberry’s brand and business, will be stepping down after nearly five years with the company to take up another opportunity that will enable him to return to Italy and be closer to his family,” Burberry said.

    Gerry Murphy, the company’s chairman, added that the board was “naturally disappointed’ by Gobbetti’s decision but understood “his desire to return to Italy after nearly 20 years abroad.”

      Burberry CEO, Marco Gobbetti.”With Burberry re-energised and firmly set on a path to strong growth, I feel that now is the right time for me to step down,” Gobbetti said.Read MoreIn a separate announcement, Salvatore Ferragamo confirmed that Gobbetti would become the company’s CEO “as soon as he is released from his contractual obligations” at Burberry. Shares in Ferragamo advanced 0.2% in Milan.

        Before joining Burberry, best known for its trench coats, Gobbetti spent 13 years at French luxury goods giant LVMH (LVMHF), where he was CEO of Givenchy and Celin.— This is a developing story and will be updated.

        Source: edition.cnn.com

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