Mulberry CEO Andrea Baldo has unveiled a comprehensive turnaround strategy, “Back to the Mulberry Spirit,” following a strategic review of the British luxury brand. The plan aims to restore profitability through simplification, brand realignment, and enhanced customer engagement.
The new strategy announcement comes after Mulberry reported disappointing festive trading results, with an 18.3 per cent drop in group revenue for the 13 weeks ending 28th December 2024. The company recorded a stark 16.5 per cent drop in its retail sales and 8.7 per cent decline in international sales. Additionally, the sales in the Asia Pacific region also dropped by 27.9 per cent.
Alongside the turnaround plan, Mulberry announced the appointment of Billie O’Connor as its new CFO, effective 17th February. O’Connor brings extensive experience from roles at Muller Group, Selfridges Group, Marks & Spencer, and Walgreens Boots Alliance. She succeeds Charles Anderson and has expressed her enthusiasm for joining Mulberry during this transformative period.
The company aims to simplify the business by focusing on the markets of UK and US, restructure the Asian markets, and reduce emphasis on the Chinese market. In addition to this, they will take up cost control measures, and re-enter into wholesale and outlet channels.
This also includes closing 12 underperforming stores in the Asia-Pacific region, new partnerships with retailers like Flannels and John Lewis, expanding the Nordstrom partnership in the US, and a spending review targeting a 25 per cent reduction in annual operating costs. A leadership team restructuring is also expected.
