Burberry’s Christopher Bailey moved from chief executive to president

Shares in Burberry jumped more than 6% after the move was announced.

Sir John said: “Since taking on the combined role of chief executive and chief creative officer, Christopher Bailey has done an excellent job set against a backdrop of challenging market conditions”.

Burberry has appointed a new chief executive in an attempt to halt its falling profits and improve growth rates.

Also next year, Julie Brown will become chief operating and financial officer replacing Fairweather who has chose to pursue new opportunities.

Burberry has poached the boss of luxury brand Céline to replace chief executive Christopher Bailey and revealed that finance boss Carol Fairweather is leaving.

Bailey held two titles at Burberry – he was the company’s CEO as well as the chief creative officer.

The firm has made destabilizing changes in recent months, including bringing all its sub labels such as Prorsum, Brit and London under one Burberry brand and regrouping its menswear and womenswear shows into one.

Bailey got a 75% pay cut last month, because of the poor results.

In the 2015/16 year both revenue (£2.5bn/$3.3bn) and profit were down on the previous year, with the wholesale division – in which duty free and travel retail sales sit – down by -2% to £635m. Monday’s arrangement, should it last, is something of a coup for Burberry since Mr. Bailey-who has been with the company since 2001-is widely known as being the face of the brand and losing him entirely would have been a significant blow for the British trench coat maker. Gobbetti, who is also the chairman of LVMH’s (LVMUY) Celine, has a track record of developing brands including Givenchy, Moschino, and Bottega Veneta, according to the announcement.

The company in May said it would work to save at least GBP100 million a year by fiscal 2019 by reducing complexity, simplifying processes and eliminating duplication in its operations.

According to Burberry’s chairman Sir John Peace, it was Bailey who chose to bring in a new CEO, after instigating a review of the label created to reduce costs by £100 million. She is now CFO of Smith & Nephew and credited with experience of cost discipline and restructuring, according to Solca.