Struggling luxury brand Mulberry has announced it will streamline and rebuild the business as its profit continues to fall, signalling possible job cuts. Mulberry told markets this morning that UK retail sales fell by 14 per cent in the six months to September 28. Sales in Asia fell 31 per cent, while group sales overall fell by 17 per cent.
Revenue at the luxury retailer fell 19 per cent to £56.1m, from £69.7m last year.
Mulberry cut operating expenses by 16 per cent – or £10m – in the half-year, but this was not enough to offset reduced revenue, and the firm reported an underlying loss before tax of £15.3m. “The first half results illustrate the clear need to re-prioritise and rebuild the business,” chief executive Andrea Baldo said.
Baldo said Mulberry had “taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position”. “This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation. Additionally, we’ve made strategic adjustments to our product, pricing, and distribution strategies, and we’ve begun discussions with luxury wholesale partners to ensure we are present wherever our customers shop,” he said.
Baldo, who has over 20 years experience in the fashion industry, was hired in July to turn the struggling company around . “Mulberry is an iconic brand. It stands out for its rich heritage and craftsmanship – qualities that our customers re.