Latest news with #AndreaBaldo
Fashion United
8 hours ago
- Business
- Fashion United
Mulberry eyes 20 million pound fundraise as transformation plan progresses
British brand Mulberry is looking to raise 20 million pounds of additional capital in a fundraising to back its growth strategy as its ongoing transformation plan progresses. It comes 'in light of an even more challenging trading environment seen at a macro level', the group noted. In a regulatory filing, the luxury accessory label said, with the fundraising, its main priorities included rebuilding core stocks; investing in new accretive revenue streams, such as outlets and wholesale; select marketing spend within the UK and US; and upgrading existing customer engagement. Mulberry's majority shareholder Challice Limited said it was willing to underwrite, in full, the fundraising, which is expected to complete in July 2025. The board has also been engaging with the company's other major shareholder, Frasers Group, in order to reach a final structure and agreement of the fundraising. Mulberry has received approval for a request made to HSBC UK Bank to relax the minimum liquidity covenant for an agreed period until the fundraising is complete, releasing around 6.5 million pounds to the company. An affiliate of Challice has further entered into a cash backed guarantee matching the increased covenant headroom. Losses anticipated to marginally narrow in FY25 The news comes as Mulberry reported that it is expecting revenues in the region of 120 million pounds for FY25, down from 152.8 million pounds in the year prior, with an underlying loss before tax of around 23 million pounds, narrowing from the prior 22.6 million pounds. Trading in the first 11 weeks of the fiscal year is 'in line' with expectations. Its audited financial statements are scheduled for July 2025. Mulberry's pursuit of fundraising comes amid a wider transformation strategy, 'Back to the Mulberry spirit', which has set out to simplify and streamline operations, reduce cost base and refresh the brand platform. Since January, when the plan was introduced, the company has made changes to its management team, established new wholesale agreements in the UK and US, launched a '4 seasons' approach and reviewed its store estate, resulting in the closure of non-profitable stores. In a statement, Andrea Baldo, chief executive officer of Mulberry, said the company was 'firmly in turnaround mode – focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives'. Baldo continued: 'Following our year-end review, the board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace."
Yahoo
30-01-2025
- Business
- Yahoo
Mulberry has ‘neglected to connect' with UK shoppers, says boss
Struggling luxury bag maker Mulberry has 'neglected to connect' with British customers in recent years and plans to sell more bags in the UK, rather than China, to make the company profitable again. Chief executive Andrea Baldo told the PA news agency the company has 'lost so much business' in the UK in recent years that there is 'a huge space' for the company to grow. Founded in 1971, London-based Mulberry is most famous for its luxury leather handbags. But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future. It will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels. Mulberry has no presence in Birmingham or Liverpool, he said, and it will look to expand in those cities in future. The UK expansion comes after retailers such as Marks & Spencer have warned that rising company taxes and falling consumer sentiment could hit their home market. While Mr Baldo admitted those factors are 'a challenge', he added: 'With the right product, distribution and communication, we are able to take advantage (of the UK market) no matter where the economic conditions are.' Mr Baldo, who joined last year from luxury brand Ganni, wants the company to focus on its 'Britishness' and 'cultural relevance' and simplify the business to counter plunging profits. He laid out plans to cut costs by a quarter compared with the last financial year, following a period of 'suboptimal' performance. Mr Baldo also said Mulberry will look to expand in the US. The company made nearly one-fifth less in revenue over the key Christmas period than the previous year, blaming a 'challenging' business environment. That was even worse in Asia, where sales slumped by 28% compared with the festive period in 2023. In Europe and the US, by contrast, sales grew 11% year-on-year. Mr Baldo said: 'We need to get back to where we came from and return to the spirit of Mulberry.' He added that for the company to succeed 'the business model needs to be simplified'. Mulberry already announced plans to slash roughly 85 jobs, about one quarter of its workforce, before Christmas. The turnaround plan comes after loss-making Burberry also said it would focus more on its British history to make more sales. Meanwhile, Mulberry has also hired a new finance head, Billie O'Connor, a former Marks & Spencer and Selfridges executive. Mr Baldo said: 'Billie has a wealth of experience working in the consumer retail space and has spent time leading finance teams through turnarounds.'
The Independent
30-01-2025
- Business
- The Independent
Mulberry has ‘neglected to connect' with UK shoppers, says boss
Struggling luxury bag maker Mulberry has 'neglected to connect' with British customers in recent years and plans to sell more bags in the UK, rather than China, to make the company profitable again. Chief executive Andrea Baldo told the PA news agency the company has 'lost so much business' in the UK in recent years that there is 'a huge space' for the company to grow. Founded in 1971, London-based Mulberry is most famous for its luxury leather handbags. With the right product, distribution and communication, we are able to take advantage (of the UK market) no matter where the economic conditions are Andrea Baldo, Mulberry But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. Mr Baldo said the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future. It will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels. Mulberry has no presence in Birmingham or Liverpool, he said, and it will look to expand in those cities in future. The UK expansion comes after retailers such as Marks & Spencer have warned that rising company taxes and falling consumer sentiment could hit their home market. While Mr Baldo admitted those factors are 'a challenge', he added: 'With the right product, distribution and communication, we are able to take advantage (of the UK market) no matter where the economic conditions are.' Mr Baldo, who joined last year from luxury brand Ganni, wants the company to focus on its 'Britishness' and 'cultural relevance' and simplify the business to counter plunging profits. He laid out plans to cut costs by a quarter compared with the last financial year, following a period of 'suboptimal' performance. Mr Baldo also said Mulberry will look to expand in the US. We need to get back to where we came from and return to the spirit of Mulberry Chief executive Andrea Baldo The company made nearly one-fifth less in revenue over the key Christmas period than the previous year, blaming a 'challenging' business environment. That was even worse in Asia, where sales slumped by 28% compared with the festive period in 2023. In Europe and the US, by contrast, sales grew 11% year-on-year. Mr Baldo said: 'We need to get back to where we came from and return to the spirit of Mulberry.' He added that for the company to succeed 'the business model needs to be simplified'. Mulberry already announced plans to slash roughly 85 jobs, about one quarter of its workforce, before Christmas. The turnaround plan comes after loss-making Burberry also said it would focus more on its British history to make more sales. Meanwhile, Mulberry has also hired a new finance head, Billie O'Connor, a former Marks & Spencer and Selfridges executive. Mr Baldo said: 'Billie has a wealth of experience working in the consumer retail space and has spent time leading finance teams through turnarounds.'
The Independent
30-01-2025
- Business
- The Independent
Mulberry pins hopes on ‘Britishness' to restore plunging profit
Struggling luxury giant Mulberry has said it plans to focus more on the UK and US, rather than China, in an attempt to make the company profitable again. Chief executive Andrea Baldo said he wants the company to focus on its 'Britishness' and 'cultural relevance' and simplify the business. He laid out plans to cut costs by a quarter compared with the last financial year, following a period of 'sub-optimal' performance. Founded in 1971, London-based Mulberry is most famous for its luxury leather handbags. But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company. We need to get back to where we came from and return to the spirit of Mulberry Chief executive Andrea Baldo The company said it made nearly one-fifth less in revenue over the key Christmas period than the previous year, blaming a 'challenging' business environment. That was even worse in the Asian market, where sales slumped by 28% compared with the festive period in 2023. In Europe and the US, by contrast, sales grew 11% year-on-year. Mr Baldo said: 'We need to get back to where we came from and return to the spirit of Mulberry.' He added that for the company to succeed 'the business model needs to be simplified', including 're-prioritising the UK'. Mulberry will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels. The turnaround plan comes after loss-making Burberry also said it would focus more on its British history to make more sales. Meanwhile, Mulberry has also hired a new finance head, Billie O'Connor, a former Marks & Spencer and Selfridges executive. Mr Baldo added: 'Billie has a wealth of experience working in the consumer retail space and has spent time leading finance teams through turnarounds.'
