Mulberry announces details of turnaround strategy and the appointment of new CFO
Mulberry has announced details of a new strategy to return the luxury brand to profitability through “simplification, brand realignment and enhanced customer connection”.
The news follows the conclusion of a strategic review by chief executive Andrea Baldo.
In the short term, the brand’s Back to the Mulberry Spirit” will aim to rebuild gross margin and restore profitability. Then in the medium term, it will target annual revenue of £200 million and 15% adjusted EBIT margins to enhance shareholder value.
Plans include refocusing the brand on the UK market, accelerating growth in the US, and re-aligning operations in Asia with a reduced emphasis on China.
Never Miss a Retail Update!It will also work to reinforce Mulberry’s identity as a British lifestyle brand while improving its approach to creativity and design.
Mulberry is now working to reduce its operating costs by about 25% on an annualised basis compared to 2024.
Baldo said: “Our new strategy sets out our commitment to turnaround this business and return to sustainable profitability.
“We need to get back to where we came from and return to the spirit of Mulberry. First created by Roger Saul over 50 years ago, it is this 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.”
Giving an update on its festive trading period, Mulberry said group revenue declined by 18.3% in the 13 weeks to 28 December, with retail sales down 20.3% in the UK.
Meanwhile, international retail sales dropped by 8.7% in the period, with a decline of 27.9% in Asia Pacific and growth of 11.1% in the rest of world.
Mulberry has also announced the appointment of Billie O’Connor as chief financial officer with effect from 17 February.
O’Connor has previously worked as chief financial officer at Milk & More, a subsidiary of the Muller Group, which she joined to drive a turnaround and eventual sale. Prior to that, she held a variety of finance roles at Selfridges Group, Marks and Spencer, Walgreens Boots Alliance and Esporta Group.
O’Connor said: “I am delighted to be joining the business as it embarks on this next chapter. Mulberry is a key part of Britain’s luxury retail landscape and a brand I have always admired.
“The new strategy Andrea has outlined today is a clear turnaround plan with ambition for the future. I am looking forward to working with the talented team and craftspeople to execute this new strategy and drive sustainable financial growth.”
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