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Mulberry has seen its losses widen to £15.3m in its half-year results, up from a previous loss of £13.5m, as sales plummeted amid a period of “significant uncertainty” for the business. In the half-year ended 28 September 2024, revenues fell by 19% to £6.1m, with UK sales down by 14% to £31.1m, and international sales down by 7% to £19.5m.
New CEO Andrea Baldo, who has only been in the role for several months, said there was a clear need to “reprioritise and rebuild the business” following the higher losses and lower sales.
As part of this, he said the group was now looking to streamline its operations, and has been reviewing its internal team structure to see how it can become a “leaner, more agile organisation”.
The streamlining has also included “strategic adjustments” to its product, pricing and distribution strategies, according to Baldo.
Baldo said: “Though I’ve only been in the role of CEO for under three months, the first half results illustrate the clear need to reprioritise and rebuild the business. Mulberry is an iconic brand. It stands out for its rich heritage and craftsmanship – qualities that our customers recognise and value deeply.
“In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position. This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation. Additionally, we’ve made strategic adjustments to our product, pricing, and distribution strategies, and we’ve begun discussions with luxury wholesale partners to ensure we are present wherever our customers shop.”
He added: “There is no question that our industry is facing a period of significant uncertainty, driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country. However, with the teams’ efforts on cost-cutting, a strengthened balance sheet, a renewed brand-first approach and a refreshed business strategy-details of which I’ll share in due course-I am confident we are making the right moves to bring Mulberry back to profitability.”
