Burberry has revealed that it has poached the boss of Versace to succeed Marco Gobbetti as chief executive.

The luxury brand’s shares plunged by 10% when Gobbetti – credited with turning around Burberry’s fortunes over his four-year stint, announced he was leaving at the end of the year to return to his native Italy.

The stock was up by almost 4% in early deals on Wednesday on news that Jonathan Akeroyd was to join the business from 1 April.

Versace’s owners said that while they were disappointed to lose him, they understood the appointment would enable him to be with his family in the UK.

John D. Idol, chairman and chief executive Officer of Capri Holdings, said: “I would like to thank Jonathan for his leadership and tremendous contribution to Versace.”

He added: “Versace has an exceptional management team in place, led by the innovative design vision of Donatella Versace, and we remain confident in the luxury house’s long-term growth potential.”

Burberry, known for its trench coats and trademark plaid, said Mr Akeroyd was the right choice to build on its creative heritage.

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“Jonathan is an experienced leader with a strong track record in building global luxury fashion brands and driving profitable growth,” chair Gerry Murphy said.

The company said that during his five years at Milan-based Versace, Akeroyd had accelerated growth and elevated product.

Before that, from 2004-2016, he led the turnaround of British luxury brand Alexander McQueen.

While COVID-19 has over the last months hurt Burberry’s sales by closing its stores across the world, the brand has since recovered.

It said in July its like-for-like sales had risen above pre-pandemic levels, driven by new, younger fans of Riccardo Tisci, the designer who Gobbetti brought in to revitalise the brand and who investors are relieved is staying put.

Mr Murphy is to chair the executive committee for the three months until Mr Akeroyd joins the business.

The CEO-designate said of his appointment: “I have long admired Burberry’s position as the most iconic British luxury brand and I have a deep affection for its storied heritage.

“I am looking forward to returning to London where I first built my career in the luxury industry to join a talented team with ambitious plans for the future and a strong platform to accelerate growth.”

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