Burberry CEO's Upscale Vision Leaves Investors Feeling Poorer
- Shares plunge as Gobbetti outlines strategy for luxury brand
- No news on creative director to succeed departing Bailey
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Four months into the job, Burberry Group Plc’s new boss presented his vision for the company. Investors didn’t like what they heard, sending the stock tumbling the most in five years.
The problem: Marco Gobbetti’s new Burberry looks like a more expensive version of the existing one. The new chief executive officer promised to move a company known for utilitarian trenchcoats “firmly” into high-end luxury, but that’s going to cost Burberry as he weeds out underperforming shops and spruces up those that remain with a snazzier lineup of handbags.