Burberry’s shareholders had expressed their concerns over Bailey’s role as both CEO and Chief Creative Officer since May 2014. He is to continue his creative role and be appointed President.

Gobetti, currently Chairman and CEO of French luxury brand Celine, is to assume his new role at Burberry as soon as his contract allows him to do so in 2017.

Burberry’s pre-tax profit dropped to £415.6 million (US$551 million) in the year to March 31, 2016 on flat revenue of £2.5 billion (US$3.3 billion). The UK headquartered luxury Group is to save around £100 million (US$132.6 million) over the next three years due to the fall in annual profits. Read more here.

As reported by ILM, in June 2016, John Smith, Burberry’s Chief Operating Officer since March 2013, announced he was to leave his position in the summer of 2017 to “pursue new interests” in other fast developing international businesses.