Mulberry Targets £10m Cash Injection to Counteract Declining Profits

Mulberry is set to raise over £10 million despite reporting losses in its latest financial year.

The luxury fashion label disclosed a pre-tax loss of £34.1 million for the year ending March 30, a drastic decline from a profit of £13.2 million in the prior year. This downturn is mainly attributed to a 4% decrease in group sales year-on-year, totaling £152.8 million, particularly impacted by a “challenging” latter half of the fiscal period.

Additionally, Mulberry has encountered challenges in the first 25 weeks of the ongoing financial year, with a pronounced slowdown in the luxury market resulting in an 18% decline in group revenue and a 14% fall in retail revenue compared to the same timeframe last year.

New CEO Andrea Baldo expressed: “Since my arrival, I have been working closely with our teams in both the UK and internationally to implement swift and decisive actions.

“In the immediate term, our focus is on enhancing operational efficiency while executing targeted strategies in product, pricing, and distribution to reclaim market share, particularly in our core market of the UK.”

“While these urgent measures are crucial, I am also committed to conducting a comprehensive review aimed at developing a renewed strategy that positions the group for both short-term recovery and sustainable long-term growth.”

Chairman Chris Roberts remarked: “Throughout the year, the macroeconomic environment presented substantial challenges for the luxury sector, with global markets witnessing a decline in consumer spending.”

“Although the financial results for the year were disappointing, we are optimistic that the combination of appointing a new CEO, securing a new debt facility, and raising capital… will provide the group with a robust foundation for future growth.”

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