Mulberry to 'celebrate' Britishness in turnaround plan
By Abigail Townsend
Date: Thursday 30 Jan 2025
(Sharecast News) - Mulberry Group laid out turnaround plans on Thursday, including halting losses and reclaiming its position as a must-have, iconic British brand.
The handbag manufacturer has seen sales slide and losses mount as demand for luxury goods wanes. In the 13 weeks to 28 December, group revenues slid 18.3%, with particularly weak performances in the UK and Asia Pacific.
It has also been fighting a takeover approach from Frasers Group, its second-largest shareholder.
However, Singapore's wealthy Ong family - which owns 56.4% - has said it is not interested in selling, and has instead thrown its support behind new chief executive Andrea Baldo.
No takeover of Mulberry is possible without the backing of the Ong family.
Baldo was brought in last summer to help turn the struggling business around and on Thursday the company unveiled the results of his strategic review alongside the trading update.
Acknowledging its recent performance had been "sub-optimal", Mulberry said it planned to restore profitability in the short term, while targeting annual revenues of more than £200m in the longer term.
It intends to simplify the business, including refocusing on the UK market, accelerating growth in the US but realigning operations in Asia, including a reduced emphasis on China. The ailing Chinese economy has hit luxury goods manufacturers especially hard hit.
It will also re-enter the wholesale and outlet markets, cut costs and reduce reliance on promotional activity.
The brand itself, meanwhile, will be repositioned to "celebrate" British lifestyle while appealing to a "global, fashion-forward audience".
Baldo said: "Our new strategy sets out our commitment to turn around this business and return to sustainable profitability.
"We need to get back to where we came from and return to the spirit of Mulberry. It is [the brand's] Britishness, cultural relevance, creativity and responsible craftsmanship that is so loved by our customers.
"These strengths, along with our unique price position, sets us apart from the market."
Mulberry also announced that Billie O'Connor would join as chief financial officer next month, replacing outgoing incumbent Charles Anderson.
O'Connor, 43, was most recently at Milk & More, part of German dairy giant Muller Group.
As at 1215 GMT, Mulberry's AIM-listed shares were down 2% at 95.5p.
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