Burberry shares tumble after CEO resigns to join rival

(CNN Business) – Marco Gobbetti, who led a radical change in Burberry, will leave the British luxury fashion brand later this year, to return to Italy, where he will lead his rival, Salvatore ferragamo.

Burberry announced Gobbetti’s resignation, in a release on Monday, sending the company’s share price down as much as 8% in London. The stock was last trading 7% below its close on Friday.

“Marco, who has led the transformation of the Burberry brand and business, will be leaving his role after nearly five years with the company to seize another opportunity that will allow him to return to Italy and be closer to his family,” said Burberry.

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

“With Burberry revitalized and firmly on the road to strong growth, I feel like now is the right time for me to step down,” said Gobbetti.

In a ad Separately, Salvatore Ferragamo confirmed that Gobbetti would become the CEO of the company “as soon as he is released from his contractual obligations” at Burberry. Ferragamo shares were up 0.2% in Milan.

Before joining Burberry, best known for its trench coats, Gobbetti spent 13 years at French luxury goods giant LVMH, where he was CEO of Givenchy and Celine.

This is a developing story and will be updated.