Latest news with #AndreaBaldo
Yahoo
12-07-2025
- Business
- Yahoo
Mulberry reports 21% revenue decline in FY25 and £20m capital raise
British luxury handbag maker Mulberry Group has reported a 21% decline in group revenue to £120.4m ($163.5m) for the fiscal year 2025 (FY25) amid challenging macro-economic conditions impacting the global luxury market. The group has experienced a 20% decline in its UK retail and digital revenues, attributing the drop to broader economic challenges, uncertainty and inflationary pressures that have altered consumer spending patterns and behaviours. In North America, retail revenue fell by 1% compared to the previous period. The company recorded an underlying pre-tax loss of £23.7m. This was due to decreased revenue influenced by the economic environment and activities aimed at optimising stock levels. The reported pre-tax loss stood at £31.8m, partly due to operational cost reductions implemented throughout the year, which are expected to extend into FY26. Gross margin for the period was 66.8%. This is largely a result of inventory optimisation efforts in FY25 that included promotional sales and markdowns, as well as changes in the mix of wholesale customers. Mulberry outlined a new strategy, Back to the Mulberry Spirit, on 30 January 2025 'to restore profitability through simplification, brand realignment and enhanced customer connection'. CEO Andrea Baldo stated: "We have made significant progress in laying the foundations for Mulberry's turnaround. Since launching our Back to the Mulberry Spirit strategy in January, we have acted at pace to simplify the business, reduce costs, and refocus on our most profitable channels and markets. This is an ambitious transformation, underpinned by operational discipline and a commitment to placing creativity at the heart of everything we do." "At the same time, we are reinvigorating the brand to reassert its cultural relevance and emotional resonance with customers. The launch of our new campaign, A Return to Somerset, marks an important milestone, celebrating our roots, values and the distinct British voice that defines Mulberry." Mulberry also disclosed raising £20m from major shareholders Challice and Frasers Group, through the issuance of new convertible loan notes. In parallel, a separate retail offer will enable minority shareholders to maintain their stakes in the company, potentially adding £1.2m before expenses. The proceeds will be used to make targeted investments for future expansion and achieve medium-term financial targets. As part of its ongoing transformation, Mulberry is targeting FY26 annual revenue in excess of £200m and an adjusted earnings before interest and taxation (EBIT) margin of 15% over the mid-term. The company noted that the current trading aligns with the board's expectations, with an 18% year-on-year revenue decline in the first nine weeks post-FY25. it also said that full-price retail and digital sales were showing positive trends. The company has appointed James France from Frasers to its Board as a non-executive director effective 30 July 2025. Baldo added: "We welcome the additional capital injection from both our major shareholders, which will enable us to keep moving with pace - investing in product, digital, and international growth to deliver long-term value and the appointment of James France to the board." "Mulberry reports 21% revenue decline in FY25 and £20m capital raise" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Mulberry Secures 20 Million Pounds in Funding as New Strategy Takes Root
— The Mulberry puzzle is coming together, but it's going to take time, said Andrea Baldo, chief executive officer of the brand, which on Thursday reported a 21 percent decline in group revenue to 120.4 million pounds, and a pretax loss of 31.8 million pounds for fiscal 2025. The pretax loss for the year ended March 29 was smaller compared with the previous year's 34.1 million pounds. The narrowing was due to cost-cutting measures and around 12 store closures, which Baldo enacted as soon as he arrived in September, midway through the 2025 fiscal year. More from WWD Brigitte Macron's Bold Shoulder Detail Adds Sparkling Flair to Her Evening Gown for London Banquet With Emmanuel Macron Cos Heads to India, Plots Return to New York Fashion Week In 'Semele,' Heartbreak Is Dressed Up in Lace and Diamonds In an interview, Baldo said Mulberry suffered last year from 'the combined effect of a very challenging macroeconomic environment for luxury, a moment of transition for the industry, and the brand's previous strategy not performing.' Baldo said he worked quickly to reduce the cost structure (including laying off head office staff), resize the company, cut inventory, 'and do everything we could to safeguard cash.' Most of the stores he shut were in China, where the luxury slowdown has been severe. He also brokered wholesale deals with stores such as Nordstrom in the U.S. and David Jones in Australia. The brand is looking to drive further international expansion and new partnerships with Harvey Nichols, Liberty, Flannels and John Lewis in the U.K. The medium-term aim, Baldo said, is for wholesale to account for around 15 percent of business. 'We know it's going to take time — at least a year of fighting before we see the final result of our hard work,' said Baldo, whose ambition, over the midterm, is to achieve annual revenue in excess of 200 million pounds and to deliver an adjusted EBIT, earnings before interest and taxes, margin of 15 percent. In the interview, Baldo added that some positive trends have emerged in the first weeks of the fiscal year. For the nine weeks ended June 1, group revenue across retail, digital and wholesale declined by 18 percent year-over-year, 'in line' with the board's expectations. Baldo said the double-digit decline reflects the store closures, and the impact of loss-making and underperforming stores. Retail and digital revenue declined by 17 percent on a reported basis. Like-for-like retail and digital revenue declined by 5 percent. He added that a continued focus on optimizing the store portfolio and reducing markdowns is expected to deliver a further 2 million pound improvement to underlying EBITDA, or earnings before interest, taxes, depreciation and amortization, in fiscal 2026. The company has already delivered 5.9 million pounds in annualized gross cost savings, achieving a lower sustainable cost base in the current financial year. During the first nine weeks, key markets such as the U.K. and North America showed an 'improving trend' in like-for-like performance, trading 1 and 5 percent behind the prior year, respectively. In addition, full-price retail and digital sales in both markets were ahead year-over-year, and 'demonstrating positive momentum.' continued to outperform the prior year, 'underlining the strength of the group's direct-to-consumer digital channel.' Mulberry said wholesale is 'well-positioned' for growth in fiscal 2026, with orders for the spring 2026 collection up in the double digits compared with the corresponding period last year. The Bayswater family remained the leading contributor to bag sales, while mini bags delivered strong year-over-year growth, reflecting ongoing consumer demand for trend-led product. Earlier this year, Mulberry launched its brand campaign, 'A Return to Somerset,' celebrating the brand's heritage, English roots and factory headquarters. A second installment of the campaign will be released in September. Baldo added that Mulberry has also been focusing on 'customer proximity,' with more in-store events and one-on-one services to drive desirability, and there will be more to come. 'We've been asking ourselves, 'How can we get closer to our customers?' We've already changed the seasonality of the product so there is more newness coming every quarter, and we're trying to connect with tastemakers. We are doing events in the stores, and in Somerset. It's going to take some time, but the proximity is very important for us,' he said. Baldo has been sticking to Mulberry's pricing strategy, making sure that 60 percent of the offer is less than 1,000 pounds. He said that only the 'fashion forward product' would carry a higher price tag. Alongside the results, Mulberry confirmed that it has raised a further 20 million pounds. The fundraise was underwritten by the brand's main shareholder Challice Ltd., which belongs to the Singaporean billionaires Christina Ong and Ong Beng Seng, and the substantial minority shareholder Frasers Group. Mulberry also disclosed on Thursday that it will undertake a separate retail offer to enable minority shareholders to participate in the fundraising. Full subscription of the retail offer would raise an additional 1.2 million pounds, which will be used to drive the business and enable Baldo's turnaround plan. Mulberry has named James France a non-executive director starting on July 30. France is a senior member of the leadership team at Frasers with experience in real estate optimization and business development, and will represent Frasers on the board. Best of WWD The Definitive Timeline for Sean 'Diddy' Combs' Sean John Fashion Brand: Lawsuits, Runway Shows and Who Owns It Now What the Highest-paid CEOs at U.S. Fashion and Retail Companies Make Confidence Holds Up, But How Much Can Consumers Take?
Fibre2Fashion
11-07-2025
- Business
- Fibre2Fashion
UK's Mulberry reaffirms $256 mn revenue target despite FY25 headwinds
British sustainable lifestyle brand Mulberry Group plc has reported a 21 per cent year-over-year (YoY) decline in total revenue to £120.4 million (~$140.87 million) for full fiscal 2025 (FY25) ended March 29. The decline reflects the contraction in the global luxury market and ongoing macro-economic headwinds, including inflationary pressures and weakened consumer sentiment. In the UK, retail and digital revenue dropped 20 per cent, impacted by reduced consumer spending amidst economic uncertainty. North American retail revenue declined just 1 per cent, supported by the full-year trading of new Nordstrom stores and the launch of a Nordstrom online concession. Mulberry Group plc has reported a 21 per cent YoY revenue decline to £120.4 million (~$140.87 million) in FY25 amid global luxury market contraction. Despite losses and margin pressure, the brand remains cautiously optimistic for FY26. Strong digital sales, full-price growth, and wholesale momentum support recovery. CEO Andrea Baldo highlighted strategic simplification and brand reinvigoration. The group reported an underlying loss before tax of £23.7 million, primarily due to reduced revenue and stock optimisation efforts. The reported loss before tax improved slightly to £31.8 million from £34.1 million in FY24, aided by operating cost savings that are expected to carry into the current fiscal (FY26), Mulberry said in a press release. The gross margin of the company fell to 66.8 per cent, down from 70.1 per cent in FY24, as inventory optimisation initiatives involved significant promotional and markdown activity, along with a shift in the wholesale customer mix. In September 2024, Mulberry raised £10.35 million through a new share issue to strengthen its balance sheet and enhance financial flexibility during the strategic shift and turbulent market conditions in the second half (H2) of FY25. Despite the tough environment, Mulberry remains cautiously optimistic about FY26. Trading in the first nine weeks of the new fiscal has aligned with the board's expectations. Total group revenue declined 18 per cent, primarily due to planned store closures, but like-for-like retail and digital revenue fell by only 5 per cent. Notably, full-price sales outperformed YoY in both the UK and North America, signalling improving consumer engagement. The group's digital channel via the official site of Mulberry continues to show strong performance, reinforcing the strength of its direct-to-consumer (DTC) strategy. The wholesale division is positioned for growth, with Spring/Summer 2026 orders showing double-digit gains over the previous year, bolstered by new leadership and partnerships with Harvey Nichols and Liberty. Key product families like Bayswater and Mini Bags maintained solid demand. Following the launch of its new brand campaign 'A Return to Somerset', Mulberry has reaffirmed its strategic focus on full-price sales, brand desirability, and operational efficiency. 'We have made significant progress in laying the foundations for Mulberry's turnaround. Since launching our 'Back to the Mulberry Spirit' strategy in January, we have acted at pace to simplify the business, reduce costs, and refocus on our most profitable channels and markets. This is an ambitious transformation, underpinned by operational discipline and a commitment to placing creativity at the heart of everything we do,' said Andrea Baldo, chief executive officer (CEO) at Mulberry Group. "At the same time, we are reinvigorating the brand to reassert its cultural relevance and emotional resonance with customers. The launch of our new campaign, 'A Return to Somerset', marks an important milestone, celebrating our roots, values and the distinct British voice that defines Mulberry.' Looking ahead, the group reaffirmed its mid-term goal of surpassing £200 million (~$256 million) in annual revenue and achieving an adjusted EBIT margin of 15 per cent, underpinned by its renewed strategy and ongoing commitment to disciplined execution, the release stated. Fibre2Fashion News Desk (SG)
Daily Mail
10-07-2025
- Business
- Daily Mail
Handbag maker Mulberry raises £20m from shareholders as sales plunge
Shares in luxury fashion firm Mulberry fell yesterday as it revealed a sharp decline in annual sales and announced that it had raised £20million from its largest shareholders. The handbag maker said revenues for the year to March 29 plunged by 21 per cent to £120million, blaming a slowdown in the wider luxury market. Pre-tax losses widened to £24million. The firm said its two largest shareholders, Singapore-based Challice and Sports Direct owner Frasers Group, supported a £20million fundraise. It will also appoint Frasers executive James France to the board of directors. Shares fell 5.1 per cent, or 5p, to 92.5p. Mulberry, known for its collection of bags in collaboration with TV presenter Alexa Chung (pictured), is attempting to turn around its fortunes under chief executive Andrea Baldo, who took over in September. Yesterday, Baldo said Mulberry had made 'significant progress' but performance over the past year has been affected by 'macro-economic conditions, uncertainty and inflationary pressures'. Mulberry's turnaround plan includes the closure of 12 shops in Asia, and a 'refresh' of its brand identity.
Fashion Network
10-07-2025
- Business
- Fashion Network
Mulberry secures £20 million as sales fall 21% and transformation plan begins
British luxury brand Mulberry, renowned for its leather handbags, reported a 21% drop in annual revenue on Thursday and confirmed it had secured £20 million in funding — an amount it had previously targeted — with backing from its two largest shareholders, Challice and Frasers Group. The company's shares fell by approximately 5% following the announcement. Mulberry also announced that James France, an executive at Frasers Group, will join its board of directors as a non-executive director, effective 30 July — signalling a possible shift in governance as the brand pursues its transformation strategy. For the 52 weeks ended 29 March 2025, Mulberry recorded revenue of £120.4 million, down from £152.8 million the previous year. The brand also posted an underlying loss before tax of £23.7 million, slightly wider than the £22.6 million loss recorded the year prior. The newly secured capital will accelerate Mulberry's 'Back to the Mulberry Spirit' transformation plan, which aims to streamline operations, reduce costs, and close 12 underperforming stores across Asia. The brand also intends to reinforce its wholesale strategy by expanding partnerships with premium department stores in the U.K., U.S., and Australia. Mulberry expects to achieve £5.9 million in annualised cost savings. It has also secured £6.5 million in liquidity relief from HSBC UK, matched by a guarantee from Challice Limited, one of its major shareholders. For the nine weeks to 1 June 2025, the group's revenue declined by 18% year-on-year, with retail and digital sales falling by 17%. However, Mulberry noted early signs of stabilisation in key markets including the UK and North America. Chief executive officer Andrea Baldo is leading the brand's renewed focus on its British heritage, aiming to reconnect with loyal domestic customers. This heritage-driven repositioning forms part of a broader plan to drive revenue beyond £200 million and reach a medium-term adjusted earnings-before-interest-and-tax (EBIT) margin of 15%.
