Mulberry eyes £20m fundraising as losses widen

Mulberry has announced plans to raise £20m in funding as part of a turnaround plan to return to profitability, as it anticipates its full-year losses will widen.

The group said it expects to report a profit loss before tax of around £23m, ahead of the £22.6m loss reported last year, as well as revenues of around £120m for FY25, down from £152.8m in FY24.

It added its latest fundraising effort will support its target to report £200m in annual revenues with a 15% EBIT margin. The group has been in talks with majority shareholders Challice and Frasers Group regarding the plan. 

It comes as the company has been undergoing a transformation plan entitled ‘Back to the Mulberry Spirit’, which was first unveiled in January 2025 under the leadership of new CEO Andrea Baldo.

The plan aims to simplify and streamline its operations to reduce its cost base, and includes a senior management overhaul, new wholesale agreements with UK department stores, as well as international expansion through Nordstrom and David Jones. The group added it will also close underperforming retail locations. 

As part of the turnaround plan, the group said it has “identified and implemented” £5.9m of cost savings, and established a “lower and more sustainable” cost structure for the future. 

Baldo said: “When I outlined our strategy in January, I set out a clear two-phased approach. In the near term, we are firmly in turnaround mode – focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives.

“Since then, we’ve taken decisive steps to improve performance and lay the groundwork for sustainable growth. These include securing UK distribution deals with Flannels and John Lewis, expanding international reach through new doors in Nordstrom (US) and David Jones (AU), and enhancing our product offer by growing our icon families in full price stores and optimising our inventory levels for outlet stores.”

He added: “We’ve refreshed the executive team, aligned talent to our revised strategy, and launched a new brand campaign to drive customer engagement. Operationally, we’ve enhanced customer service through a new incentive model linked to in-store conversion, improved relationships with our supply chain partners and built a robust wholesale pipeline for FY26. 

“Alongside this, we’ve taken action to reduce costs – restructuring head office and exiting unprofitable stores – delivering a lower run-rate cost base into FY26.”