Burberry Group PLC has named luxury veteran Marco Gobbetti as its new chief executive, replacing Christopher Bailey who has attracted strong criticism during his two-year tenure as the British fashion label's CEO and creative head.

Shares jumped 6.4% in recent trading in London to £ 12.36.

Mr. Bailey, who has been demoted to Burberry's president and chief creative officer, faced mounting criticism from investors and analysts after failing to turn around Burberry's declining sales following a slowdown in China and the U.S.

The company has named Julie Brown—chief financial officer of global medical technology business Smith and Nephew PLC—as its new chief operating and financial officer. Smith and Nephew said the search for a successor is under way. Carol Fairweather is leaving Burberry.

Mr. Gobbetti is currently CEO and Chairman of Cé line, the influential LVMH-owned fashion and accessories brand. He will start as Burberry's CEO starting next year.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

July 11, 2016 09:45 ET (13:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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