Ferragamo parts ways with CEO Marco Gobbetti

Salvatore Ferragamo has parted ways with former Burberry boss Marco Gobbetti, whom the brand has said will leave next month after scarcely more than three years at the helm.

During his tenure, Gobbetti, who took over the brand in January 2022, failed to curb a slide in sales at the Florentine luxury house.

Like many other family-owned Italian labels, Ferragamo has found it difficult to adjust to fast-changing luxury consumer tastes amid a worldwide luxury slowdown.

Under Gobbetti's tenure, shares in the company have dropped 66%.

Holding company Ferragamo Finanziaria owns 54.3% of the group, which went public in 2011, selling its shares at €9 each (£7.49). Shares in the company were down 0.8% on Monday, valued at €7.65 (£6.36) per share.

In May, the business posted revenue declines of 8.3% to €227 million (£188.8 million) for the three months ending 31 March 2024, which it attributed to dampened demand in China.

Troubles at the leather goods business over the years have sparked discussion of a possible sale, which the family has consistently snubbed.

The business announced in a statement yesterday that it has begun looking for a new Chief Executive. Chairman Leonardo Ferragamo will take on executive powers with help from an advisory committee before the company finds a replacement for Gobbetti, after his exit on 6 March.

Gobbetti will receive a €4.5 million (£3.74 million) exit package, after agreeing to waive his 2024 bonus.

In October, Gobbetti had warned of a 2024 operating profit at the lower end of analyst estimates. In December, Ferragamo said it would run an impairment test on its accounts based on its profit outlook and its full year results would include asset writedowns of between €70-90 million (£58.2-74.8 million).

The advisory committee supporting Leonardo Ferragamo comprises Chief Transformation and Sustainability Officer James Ferragamo, former General Manager Ernesto Greco and former CEO Michele Norsa, who will also act as Special Chairman Advisor.

Leonardo, one of the six children of founder Salvatore Ferragamo, took on the group chairmanship in 2021, succeeding his brother Ferruccio, James' father.