Burberry today announced the shock departure of its long-standing finance chief.
Stacey Cartwright, who took up her role at the British listed luxury giant in 2004, will leave the board after the group’s annual general meeting in July.
City figures called Cartwright a “very important figure for Burberry” and the news coincided with a 4.3% fall in the share price, making it the worst performer on the benchmark index, down 61p to 1368p.
But some industry experts put the large share price drop down to fears of a change in Chinese law on luxury goods advertising, which could hit the sectors' hopes for growth.
Seymour Pierce analyst Kate Calvert, said: “Stacey has played an integral role in modernising and rejuvenating the brand. She is chief executive material and has already achieved so much so young with a long and bright future ahead.”
The departure of Cartwright comes amid a boardroom shake-up at the British luxury brand. It has drafted in BBC Worldwide veteran John Smith for the newly created job of chief operating officer. Smith has been a non-executive director at Burberry since 2009 and Burberry wants to tap into his wide media experience to develop the brand.Cartwright’s role will be taken on by Carol Fairweather, previously of News International, who has worked at Burberry for six years. Fairweather will report in to Smith.
Angela Ahrendts, chief executive officer, said of Smith: “His exceptional global brand and media expertise, together with his track record in finance and operations, will be invaluable… to drive growth in the mobile digital age.”
Smith has 20 years’ experience in media and was chief executive of BBC Worldwide from 2005 until last year when then-BBC director-general George Entwistle reorganised the senior management.
Analyst Rodolphe Ozun, at Bank of America Merrill Lynch, said: “Cartwright will no doubt be missed given her track record, but the company has strengthened its management team over the past few years, and the appointment of two experienced executives in their respective fields, with good knowledge of the company, coupled with a six months transition period suggests that the transition should be smooth.”
Cartwright is taking time off during the summer before pursuing another role.
