15 hours ago
UK's Mulberry eyes $272 mn revenue goal, launches $25.3 mn fundraising
British luxury lifestyle brand Mulberry Group plc has announced plans to raise £20 million (~$25.3 million) in additional capital to support its ongoing transformation and growth strategy, as the company aims to achieve medium-term targets of £200 million (~$272 million) in annual revenue and a 15 per cent EBIT margin.
The fundraising initiative, expected to conclude in July 2025 alongside the release of its fiscal 2025 (FY25) audited results, will be used to strengthen the company's core operations, expand high-margin channels, and enhance digital and customer engagement platforms.
Mulberry Group plc plans to raise £20 million (~$25.3 million) to fund its transformation strategy aimed at restoring profitability and achieving £200 million in annual revenue. Led by CEO Andrea Baldo, the brand is streamlining operations, expanding internationally, and enhancing customer engagement. FY25 revenue is expected to decline to £120 million, with a £23 million pre-tax loss.
Proceeds will also support rebuilding of core stock, especially Mulberry's 'iconic families', targeted marketing in key regions like the UK and US, and investment in outlet and wholesale revenue streams.
Led by chief executive officer (CEO) Andrea Baldo and a refreshed senior management team, Mulberry is progressing its 'Back to the Mulberry spirit' transformation plan. Key milestones already achieved include entering new wholesale agreements in the UK, expanding into Nordstrom and David Jones, launching a new product approach with '4 Seasons', exiting non-performing stores, and reducing operating costs.
For fiscal 2025 (FY25) ending March 29, 2025, the company expects revenue of approximately £120 million—down from £152.8 million in FY24—and an underlying pre-tax loss of £23 million, compared to £22.6 million last year. Trading in the first 11 weeks of FY26 has been in line with expectations, although the company does not anticipate significant revenue growth in the current year, Mulberry said in a press release.
Mulberry has identified around £5.9 million in annualised cost savings to support profitability, with further optimisation of its store estate and operational efficiencies planned.
To provide interim liquidity, HSBC has agreed to relax a covenant in the company's facilities agreement, unlocking £6.5 million. Challice Limited, Mulberry's majority shareholder, has matched this with a £6.5 million cash-backed guarantee to HSBC, which will be released once the fundraising is completed.
The board is in discussions with Challice and Frasers Group plc, both substantial shareholders, regarding the structure and terms of the fundraising. While Challice has offered to fully underwrite the capital raise, if necessary, final terms remain under negotiation. Any shareholder participation will be treated as a related party transaction under alternative investment market (AIM) rules.
'When I outlined our strategy in January, I set out a clear two-phased approach. In the near term, we are firmly in turnaround mode—focused on rebuilding profitability and gross margin, while strategically investing in brand building initiatives,' said Andrea Baldo, CEO at Mulberry. 'Since then, we've taken decisive steps to improve performance and lay the groundwork for sustainable growth.'
'We have refreshed the executive team, aligned talent to our revised strategy, and launched a new brand campaign to drive customer engagement. Operationally, we've enhanced customer service through a new incentive model linked to in-store conversion, improved relationships with our supply chain partners and built a robust wholesale pipeline for FY26. Alongside this, we've taken action to reduce costs—restructuring head office and exiting unprofitable stores - delivering a lower run-rate cost base into FY26,' added Baldo.
Fibre2Fashion News Desk (SG)
