MILAN — Some mild was shed on Thursday on the adjustments brewing at Salvatore Ferragamo.
Following a unprecedented board assembly, chaired by Leonardo Ferragamo, the Florence-based firm stated late that day it had reached an settlement with chief govt officer Micaela le Divelec Lemmi, who will keep on in her function till the following board assembly, scheduled for Sept. 7, speaking the corporate’s first-half monetary outcomes.
From that date, all govt powers will probably be exercised by vice chairman Michele Norsa.
The board additionally authorized the phrases and situations of the settlement with Marco Gobbetti, who will succeed le Divelec Lemmi as common supervisor and CEO, however the firm didn’t specify when he will probably be launched from his contractual obligations at Burberry. As reported, Gobbetti stated he would stay CEO of Burberry till the tip of the 12 months.
Leonardo Ferragamo underscored the “fundamental role” that Gobbetti will play in rising the corporate “as part of an important enhancement of the brand and its potential.”
He additionally expressed his gratitude to le Divelec Lemmi “for the important work she has done” in her function since 2018, main the corporate “with commitment and dedication even in the delicate phase of the pandemic, and for having contributed to the start of a process of transformation of the group with a view to customer centricity and retail culture that will be the basis for the future developments” of Ferragamo.
Le Divelec Lemmi will stroll away with greater than 1.97 million euros “as a consideration for the early termination of the relationship and as compensation for any damages whatsoever related to such early termination” to be paid by Sept. 30 this 12 months. Le Divelec Lemmi was supposed to stay as CEO of the corporate till Dec. 31, 2023, as determined on the finish of March. The events confirmed the consensual termination of the non-compete clause, so no quantity on this case will probably be paid to le Divelec Lemmi, who didn’t maintain any firm shares as of Thursday.
As reported, Burberry Group plc revealed earlier this week that Gobbetti, who took up his CEO function in July 2017, will probably be exiting on the finish of the 12 months with the intention to transfer nearer to his household. Minutes later, Salvatore Ferragamo SpA confirmed that Gobbetti was taking over an analogous function on the Italian firm.
At the time, there was no point out of le Divelec Lemmi, though rumors about her departing the Florence-based firm have been circulating in Italy for a while. Le Divelec Lemmi is a Gucci veteran who joined Ferragamo as chief company officer and was then named CEO in 2018.
Early in his profession Gobbetti served as CEO of Moschino, and later spent 13 years at LVMH Moët Hennessy Louis Vuitton, the place he was CEO of Givenchy, working with Riccardo Tisci. He later decamped to Celine, the place he labored with Phoebe Philo.
Unlike Burberry, which is one hundred pc listed on the inventory change, the Ferragamo household nonetheless owns and part-manages the enterprise.
The model’s supply of gross sales is high-end leather-based equipment, that are much less vulnerable to seasonal developments or depending on sizzling designers. They additionally deliver larger margins and fall effectively throughout the methodical Gobbetti’s space of experience.
Ferragamo’s former inventive director Paul Andrew exited the corporate in May, and observers surprise if Tisci may very well be headed to the Italian model, following Gobbetti. The two are stated to be shut, though Tisci’s collections at Burberry have been gaining gross sales and important momentum.
Also, he’s waved goodbye to Gobbetti earlier than. Tisci spent greater than a decade at Givenchy, the place he was inventive director from 2005 to 2017. While Gobbetti was the person who initially employed Tisci, the 2 overlapped on the firm solely somewhat greater than three years when Gobbetti left for Celine.
Gobbetti will probably be Ferragamo’s fourth CEO in 5 years: Norsa stepped down in 2016 after a decade and Eraldo Poletto left in 2018 after much less two years on the job, succeeded by le Divelec Lemmi.
Analysts see Gobbetti’s arrival as delaying a possible sale of Ferragamo, permitting the chief to engineer and execute a turnaround plan, after years of a slowdown on the model.
Speculation a couple of attainable sale of Ferragamo has swirled for years, and has at all times been denied by the household, which has been easing out of prime roles and hiring exterior managers to take the enterprise ahead.
In the 12 months ended Dec. 31, Salvatore Ferragamo’s revenues fell 33.5 % to 916 million euros, however the firm reported a progressive enchancment within the second half and a constructive efficiency of the model’s shops within the first 9 weeks of 2021, topped by strong development in China and South Korea and an 85.6 % achieve within the digital channel. In the three months ended March 31, revenues rose 10.3 % to 245 million euros regardless of the continued lockdowns of shops in some international locations, impacted by the pandemic.