Burberry PLC replaced Christopher Bailey as its CEO on Monday, ending the project of having him both lead the fashion house and serve as its chief creative officer.
The luxury goods maker named Marco Gobbetti, CEO of French luxury brand Celine, as its new chief executive. He will take over in 2017.
Bailey will stay on as chief creative officer and as president, overseeing all elements of the brand known for its trench coats and checkered print.
Gobbetti will be responsible for all commercial, operational and financial elements of the business.
In many ways, Bailey was a victim of poor timing. The economic slowdown in China — the company's main growth market — began to bite soon after he was named to the job in October 2013. Sales suffered and Bailey took a pay cut to compensate for disappointing earnings.
"On product, Bailey excels," said Anusha Couttigane, senior fashion analyst at Kantar Retail. "On things like pricing strategies, maximizing profitability and thoroughly reviewing every aspect of the business.these simply aren't his main strengths and I'm sure he will welcome the support that Gobbetti will bring in these areas."