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2mo ago

Mulberry Shifts Focus to UK and US in New Profitability Strategy

The British luxury brand plans to cut costs, scale back operations in China, and reconnect with its heritage to revive sales and profits.

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Overview

  • Mulberry's new CEO Andrea Baldo has unveiled a 'Back to the Mulberry Spirit' strategy to simplify operations, refresh the brand, and strengthen customer connections.
  • The company will prioritize the UK and US markets while reducing its emphasis on China, including closing 12 loss-making stores in Asia Pacific.
  • Plans include cutting operating costs by 25% annually compared to 2024 and targeting over £200 million in annual revenue with a 15% adjusted EBIT margin in the mid-term.
  • New partnerships with retailers like John Lewis, Flannels, and Nordstrom aim to expand wholesale distribution and rebuild Mulberry's retail presence.
  • Billie O’Connor has been appointed as the new CFO to support the turnaround, following a challenging year marked by a 19% revenue decline and a pre-tax loss of £15.7 million.