The boss of Mulberry has said he needs to “rebuild the business” as the luxury handbag maker revealed that sales plunged by almost a fifth over the past half-year. The fashion brand also said it is completing an internal review, with the aim of creating a “leaner” operation. The Somerset company, which was recently the target of takeover efforts by shareholder Frasers Group, is among firms to have been hit hard by a sharp slowdown in luxury spending.
Mulberry told shareholders that group revenues fell by 19% to £56.1 million for the six months to September 28. It said trading was challenging over the half-year in the face of a “difficult trading environment and uncertain macroeconomic trends”.
Revenues from its wholesale and franchise business dived by 46% to £5.4 million as it was particularly affected by partners in Italy and Denmark reducing their orders due to tough conditions. Elsewhere, sales in its Asia Pacific division slid by 31% to £9.
3 million as it was impacted by weakness in China and South Korea. Meanwhile, UK revenues fell by 14% to £31.3 million amid “low consumer confidence”.
It also saw pre-tax losses widen to £15.7 million for the period, compared with a £12.8 million loss a year earlier.
Andrea Baldo, chief executive officer of Mulberry, said: “Though I’ve only been in the role of CEO for under three months, the first-half results illustrate the clear need to reprioritise and rebuild the business. “There is no question that our .