Checks from Burberry are back in fashion, but the departure of the company’s CEO has taken its toll on the British luxury brand.
Although Burberry Group reported an improvement in sales last Friday, the decision of its chief executive, Marco Gopetti, to leave his post to move to smaller Italian rival Salvatore Ferragamo, threatens to unravel the recent improvement.
Gobetti had set himself a goal that included elevating the company from a luxury brand to the very highest echelons of luxury.
Indeed, Gobeti has managed to stabilize the company since he joined in July 2017, as evidenced by the 90% increase in sales in the same stores in the three months to June 26, compared to the same period last year. That exceeded analyst expectations, to the point that sales slightly exceeded the pre-pandemic stage.
Gobetti brought in a new designer, Riccardo Ticchi, and laid the foundations for turning Burberry into a super-luxury brand, building a line of handbags, modernizing its signature coats, and expanding the shoe line to include sneakers.
It also stopped selling the brand’s products in regular stores and reduced special discounts.
In addition, Burberry is getting closer to Millennials and Gen Z shoppers thanks to the streetwear it is launching in limited editions.
It is no longer surprising to see young Londoners dressed in the brown, black, red, and white checks that characterize Burberry, along with other brands such as Gucci and Balenciaga.
However, the British brand still lacks the same glamor as Gucci, plus the sales growth and market margin expansion that Gucci achieved just a few years after its parent company Kering launched the brand’s transformation in 2015.
Indeed; The work on the new Burberry suit is not finished yet. For example, it is necessary to continue working until the handbag line achieves its full potential, as handbags are one of the most important sales and profit drivers for other luxury brands.
The epidemic impeded the progress of “Barbarian”. Now that it is emerging from the crisis, the company is having to search for a new CEO.
Given the path of transformation it has achieved; The next CEO’s strategy would have to align with the broad outlines of Gobeti’s plan, although that might act as a deterrent for candidates who would want to put their stamp on Burberry.
More importantly, is the match that will arise between the new CEO and Tychi, who previously worked with Gobetti at LVMH’s Givenchy brand, and joined Burberry in March 2018.
In terms of continuity, Techy’s history attests to him remaining in his position at Genifchi for more than a decade after Guppette moved to LVMH’s Celine brand – Moët Hennessy Louis Vuitton.
Ticchi’s relationship with the new CEO will be crucial to determining whether the designer stays long at Burberry.
At first, I questioned Gopetti’s appointment of Ticci, whose style aesthetic could best be described as falling in half between former Celine designer Phoebe Philo and Alessandro Michele’s fashion revolution at Gucci.
however; Embracing a change in creative management at this sensitive juncture would be beneficial.
In this regard, the company has put a lot of effort into creating a new logo, and the “monogram tchi” design intertwined with the letters “T” and “B” that adorns all of the brand’s products today, from blouses to sunblocks.