Mulberry is seeking to bolster its finances by raising over £10m following a challenging financial year.
- The luxury retailer reported a pre-tax loss of £34.1m, down from a profit of £13.2m the previous year.
- Sales declined by 4% to £152.8m, with the second half of the year proving particularly tough.
- In response, new CEO Andrea Baldo has prioritised operational efficiency and strategic adjustments to regain market share.
- The company also intends to issue new shares and launch a retail offer to enhance its financial position.
Mulberry, the well-known luxury fashion retailer, aims to raise over £10 million in cash as it confronts financial difficulties. The company transitioned from a pre-tax profit of £13.2 million last year to a substantial loss of £34.1 million within the 52 weeks ending 30 March 2024.
The company’s sales figures reflect a 4% decrease, reaching £152.8 million, attributed largely to a challenging latter half of the financial year. This setback coincides with a broader deceleration in the luxury market, affecting both group and retail revenues.
In a strategic manoeuvre, Mulberry plans to issue new ordinary shares to raise £10 million and is set to introduce a retail offer aimed at generating an additional £750,000 from existing shareholders.
Andrea Baldo, who recently assumed the role of Mulberry CEO, is taking decisive steps to counteract the downturn. In his statement, he emphasised the importance of operational efficiency and strategic product, pricing, and distribution actions to revitalise the UK market share.
Moreover, Baldo is undertaking a comprehensive review to establish a refreshed strategy aimed at both immediate recovery and sustainable growth in the long term. Chris Roberts, Mulberry’s chairman, also highlighted the adverse macro-economic conditions affecting consumer spending across global luxury markets.
Roberts expressed confidence in the company’s future, citing the recent executive leadership changes, newly secured debt facilities, and capital raising efforts as integral to establishing a firm foundation for growth.
Mulberry’s strategic initiatives focus on financial strengthening and market recovery amid prevailing economic challenges.
