Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Why we’re sticking with Burberry despite Gobbetti goodbye

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Our bullish call on luxury goods leader Burberry (BRBY) is 26.9% in the money, although the shares were marked down on the disappointing news that Marco Gobbetti plans to step down as chief executive and leave the company at the end of 2021.
Set to return to Italy and take charge of Salvatore Ferragamo, Gobbetti is credited with the positive transformation of Burberry and for taking the brand more upmarket.
His forthcoming departure creates uncertainty, although the appointment of a new broom could act as a positive catalyst and our fundamental thesis remains intact.
Burberry’s shares have recovered from their pandemic-induced slump on the expectation the trenchcoats-to-cashmere scarves seller should prosper as a wealth of unleashed pent-up demand drives a massive boom in luxury goods spending.
Full year results (13 May) confirmed an encouraging sales recovery during the year to March 2021. And in a show of confidence, Burberry reinstated the full year dividend at 2019 levels of 42.5p on the back of strong cash generation, although it also cautioned operating margins will be hit by increased investment and costs normalising in the current financial year.
SHARES SAYS: Gobbetti’s exit comes as a shock, but we still believe Burberry is a buy.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.