Burberry's Christopher Bailey moved from chief executive to president
Christopher Bailey has been sidelined as chief executive of Burberry as the fashion retailer moves to arrest falling profits and slowing growth.
Burberry has appointed Marco Gobbetti as its boss in place of Mr Bailey, who has been moved to the role of president.
Mr Gobbetti, who joins from French luxury brand Celine, will head "commercial, operational and financial elements of the business".
Investors reacted positively to the news, with shares jumping 5% to 1,235p.
In May, the group said it would slash £100 million in costs to help offset difficult trading after reporting a 10% fall in full-year profits.
As a result, Mr Bailey saw his pay plummet 75% from £7.5 million to £1.9 million after he lost out on a bonus due to Burberry missing its profit targets.
The firm said that Mr Gobbetti has a "proven track record" for growing and developing brands such as Givenchy, Moschino and Bottega Veneta.
Mr Bailey will keep his title of chief creative officer, where he will oversee "brand and design", and work in "partnership" with Mr Gobbetti.
Mr Bailey said: "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."
The luxury firm, which is famous for its trench coats and check scarves, has been hit by lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.
The retailer makes around a third of its sales from the Asia Pacific region and has been hit hard as Chinese consumers have reined in their spending, particularly in Hong Kong - traditionally a prime shopping destination for Chinese consumers.