The British leather handbag brand, Mulberry announced a funding of US $ 27 million amid a 21% drop in their annual revenue. Their funding was supported by Frasers Group and Challice but post the confirmation of funding, the brand’s share also fell by 5%.
Amid their revenue fall from US $ 207 million in FY ’24 to US $ 163 million (of the 52 weeks ended on 29th March, 2025) and loss before tax of US $ 32 million as compared to US $ 30.61 million in the previous year, this new funding comes as respite.
The brand will utilise this funding to power their already-operational “Back to the Mulberry Spirit” transformation plan, which was engineered to minimise cost and strengthen their operational capacity. This plan was further developed to close their 12 underperforming Asian stores. Apart from their transformation plan, Mulberry is also rethinking its approach towards wholesale with strategic collaborations with departmental stores in its key markets including the USA and UK.
In addition, the brand has also received £6.5 million in financial support from HSBC UK, which is backed by a guarantee from one of its main shareholders, Challice Limited. Consequently, the brand aims at securing US $ 8 million in its annual cost savings.
Following its revenue decline by 18% (YoY) for the nine weeks to 1st June, 2025, Mulberry has still witnessed stabilisation in the UK and North America. Also, to enhance its brand strategy, the brand will have James France (Executive at Frasers Group) as a member in its board of directors.
While the position of France will be effective from 30th July, the company’s CEO Andrea Baldo is looking at reconnecting with the brand’s loyal domestic customers to bolster the position of Mulberry as a heritage brand. With the renewed heritage-driven focus, the brand plans to secure a revenue of over US $ 271 million and an EBIT (earnings before interest and tax) margin of 15%.
