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    Mulberry Aims For £10m Cash Addition In Business To Counter Profit Drop

    Image Source: Elena Rostunova / Shutterstock

    Mulberry is poised to generate over £10 million in funds after reporting a loss in its most recent financial year.

    The luxury fashion brand announced a pre-tax loss of £34.1 million for the year ending March 30, a significant decline from a profit of £13.2 million the previous year, primarily attributed to a 4% year-on-year decrease in group sales, which totaled £152.8 million, particularly due to a “challenging” latter half of the year.

    Furthermore, Mulberry has faced difficulties in the first 25 weeks of the current financial year, with a notable slowdown in the luxury sector leading to an 18% drop in group revenue and a 14% reduction in retail revenue compared to the previous year.

    In an effort to bolster its balance sheet, Mulberry will issue new ordinary shares to raise £10 million and will also initiate a retail offer aimed at garnering up to £750,000 from current shareholders.

    Newly appointed CEO Andrea Baldo remarked: “Since my arrival, I have been collaborating closely with our teams both in the UK and internationally to implement swift and decisive actions.

    “In the short term, our focus centers on improving operational efficiency while executing targeted strategies in product, pricing, and distribution to recapture market share in our primary market of the UK.”

    “While these immediate steps are essential, I am also dedicated to undertaking a thorough review aimed at crafting a revitalized strategy that prepares the group for both short-term recovery and sustainable long-term growth.”

    Chairman Chris Roberts noted: “Throughout the year, the macroeconomic climate posed significant obstacles for the luxury sector, with global markets experiencing diminished consumer spending.”

    “Although the financial outcomes for the year were disappointing, we believe that the combination of appointing a new CEO, securing a new debt facility, and raising capital… will provide the group with a solid foundation for future growth.”

    Image Source: Elena Rostunova / Shutterstock

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