Burberry replaces Bailey as CEO with Céline's Gobbetti

The FTSE 100 fashion house also has poached Smith & Nephew chief financial officer Julie Brown to fill the newly created role of chief operating & financial officer, with current CFO Carol Fairweather stepping down from the board by the end of January 2017 and leaving the company at the end of the financial year.

With shares in Burberry hitting a four-year low of just over 1,000p last month, the board and leading shareholders had been looking to lighten the load on Bailey's shoulders he had borne since the departure of former CEO Angela Ahrendts in 2013.

On the announcement on Monday afternoon, Burberry's shares sashayed up 6% to 1,230p.

Bailey, who is also being given a blow-softening title of president as well as his creative role, will oversee all elements of brand and design working, working "in partnership" with Gobbetti on company strategy and culture.

Gobbetti, whose 20 years' experience in the luxury industry includes growing and developing brands including Givenchy, Moschino and Bottega Veneta, will be responsible for all commercial, operational and financial elements of the business, with both he and Bailey reporting directly to chairman John Peace.

His joining date was given ambiguously as "a date in 2017 as soon as he is contractually able to do so", while Brown, who has been allocated responsibility for finance, investor relations, IT, global business services and business transformation, is expected to join in early 2017 or earlier.

In a statement issued by the company, Bailey said: "I am very excited that Marco Gobbetti is joining us as Chief Executive Officer and as a partner to me.

"Marco brings incredible experience and skills in luxury and retail with him that will be invaluable to us. I am delighted to welcome Marco and I am looking forward to working closely with him alongside the rest of our highly talented teams. On a personal level, I know that we are going to enjoy a wonderfully collaborative partnership that makes me very excited for our future at Burberry."

Peace stressed that Bailey had done an "excellent job set against a backdrop of challenging market conditions" and Bailey's own strategic review had identified the need for a new CEO to partner with him.