Burberry shares tumble after CEO resigns

Burberry and The RealReal test the sale of used high fashion 0:29

(CNN Business) -

Marco Gobbetti, who led a radical change at 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 statement on Monday, which sent the company's share price down as much as 8% in London.

The stock was last trading 7% below its close on Friday.

Burberry shows the two faces of London 0:47

"Marco, who has led the transformation of the Burberry brand and business, will be leaving his position 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."

Burberry CEO Marco Gobbetti.

"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.

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In a separate announcement, 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.

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