Halifax born Burberry boss to step down from top role

Mr Gobbetti’s appointment was announced last year and on Monday Burberry said he will join the company on January 27, initially holding the role of executive chairman until July 5, after which he will become chief executive.

Meanwhile, Mr Bailey from Halifax will “transition to the new role” of president and chief creative officer and remain on the board.

The move is part of the fashion retailer’s strategy to arrest falling profits and slowing growth.

In May, the group said it would slash £100 million in costs to help offset difficult trading after reporting a 10% fall in full-year profits.

As a result, Mr Bailey saw his pay plummet 75% from £7.5 million to £1.9 million after he lost out on a bonus due to Burberry missing its profit targets.

When his appointment was originally announced, Burberry said Mr Gobbetti, who joins from French luxury brand Celine, has a “proven track record” for growing and developing brands such as Givenchy, Moschino and Bottega Veneta.

The group is expected to say it was boosted by the collapse in the value of the pound when it updates the market on trading later this week.