Mulberry Group LLC announced a 19% decline in revenue, falling to £56.1 million (approximately $70.9 million) for the first half of fiscal 2024, according to unaudited results released on Tuesday. Retail sales in the UK dropped by 14%, and sales in the Asia Pacific region fell by 31%. Overall, international retail sales decreased by 17%, though the company noted that the decline in Asia Pacific was partially offset by a 2% increase in other global markets.
The company posted a pre-tax loss of £15.7 million for the period, up from £12.8 million in the same period last year. Despite these challenges, Mulberry recently raised £10.4 million through an equity fundraise and renegotiated its debt facilities to strengthen its financial position. The company aims to use these measures to support a turnaround plan.
New CEO Andrea Baldo addressed the results, stating that the company must prioritize rebuilding and renewing its business. “We are focused on initiatives to regain relevance, starting with our UK consumers and expanding to our international markets,” Baldo said. To address current market conditions, Mulberry plans to streamline operations, improve profit margins, reduce working capital, and strengthen its cash flow. The company is also restructuring its internal team to become more agile and responsive.
Additionally, Mulberry is revising its product, pricing, and distribution strategies and has begun talks with luxury wholesale partners to ensure its presence across key consumer touchpoints.
In October, Mulberry’s board, along with its majority shareholder, Challice Limited, rejected an unsolicited cash offer from minority shareholder Frasers Group, marking the second such rejection in recent months. These decisions followed statements from Chairman Chris Roberts in September, in which he expressed confidence that the company’s recent fundraise and new leadership would position it for future growth despite the recent revenue decline.
Looking ahead, Baldo remained optimistic about the company’s future. He acknowledged the difficult macroeconomic environment but emphasized that with cost-cutting efforts, a stronger balance sheet, and a refreshed business strategy, Mulberry is taking the right steps toward returning to profitability. Baldo promised to share more details on the company’s strategic priorities in the near future.
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