Mulberry Reports Wider Losses Amid Sales Drop

Mulberry's new CEO, Andrea Baldo, has emphasized the urgent need to 'rebuild the business' as the luxury handbag maker reported a significant sales decline of 19%, totaling £56.1 million for the half-year ending September 28. The company experienced a pre-tax loss of £15.7 million, an increase from £12.8 million the previous year, largely attributed to weak consumer confidence in the UK and a slump in sales from key markets like China and South Korea. Baldo, who took over the CEO role just three months ago, is initiating a strategic review to streamline operations and enhance financial stability, including potential job losses and a focus on product and pricing adjustments. The brand raised £10 million in equity to support its turnaround efforts and renegotiated debt covenants. These challenges reflect broader struggles in the luxury goods sector, with Mulberry's shares dropping by about 27% over the past year amidst intense market pressures. Baldo aims to renew the brand's relevance and position Mulberry for future growth, despite ongoing uncertainties in the luxury market.