Mulberry’s new chief executive promises to ‘rebuild the business’

Mulberry’s new chief executive Andrea Baldo has committed to creating a “leaner, more agile organisation” in response to the company’s struggles.

Sales were down by one-fifth in the six months to September 28, as pre-tax losses increased to £15.7m.

Baldo said the half-year results showed “the clear need to reprioritise and rebuild the business”.

“Mulberry is an iconic brand,” he said. “It stands out for its rich heritage and craftsmanship – qualities that our customers recognise and value deeply.

“Combined with our unique position in the market, offering responsible luxury products of unmatched quality and longevity, crafted in our Somerset factories, Mulberry truly is one of a kind. We are now working on initiatives to renew the brand’s relevance, initially for UK consumers and then for our international audience.

An equity fundraising raised £10m and covenants have been renegotiated on its debt facilities to underpin the cost-cutting that has taken place across the business.

However its sales – which are 60% in the UK – continue to be under pressure from weak consumer confidence. Mulberry said it has “made strategic adjustments to our product, pricing, and distribution strategies”.