Mulberry’s boss has said he needs to “rebuild the business” after the sales drop off and, in an attempt to keep the business afloat, consider a leaner operation.
Roger Saul founded Mulberry in 1971 in Somerset, England. The company began as a kitchen table operation making buckled leather belts.
Known as the largest manufacturer of luxury leather goods in the UK, Mulberry supports and trains a community of craftspeople across two factories in Somerset, where over 50% of their bags are made.
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.
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.
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Meanwhile, UK revenues fell by 14% to £31.3 million amid “low consumer confidence”.
Mulberry also saw pre-tax losses widen to £15.7 million for the period, compared with a £12.8 million loss in 2023.
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 industry is facing a period of significant uncertainty,” added Andrea. “This is driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country.”