The chief executive officer of Mulberry, Andrea Baldo, has announced the launch of a turnaround plan after concluding a strategic review of the company. Under the title ‘Back to the Mulberry Spirit’, the British luxury label’s new strategy intends to return it to profitability “through simplification, brand realignment and enhanced customer connection”.

The launch of the turnaround comes after Mulberry’s board acknowledged its recent “sub-optimal” performance, and as such, it wished to focus on “rebuilding gross margin and restoring profitability”, while over the mid-term, targeting an annual revenue of 200 million pounds and adjusted EBIT margins to enhance shareholder value.

Its implementation comes after a disappointing festive trading period for Mulberry, which, for the 13 weeks ended 28 December 2024, reported a drop in group revenue of 18.3 percent in comparison to the same period last year. Retail sales for the company fell 16.5 percent, with trading in the UK down 20.3 percent as a result of “lack of exposure to outlet and wholesale channels”. International sales dropped 8.7 percent, meanwhile, largely due to a 27.9 percent decline in Asia Pacific trade. Without this region, international sales rose 11.1 percent.

Refocus on UK, driving US market presence and shuffling Asia operations

To counter this performance, under the guidance of Baldo, Mulberry plans to enact three strategic priorities. For the first, centred around simplifying the business, the company wants to refocus on the UK market, accelerate in the US and reshuffle Asian operations, with a reduced emphasis on China. Next to this, cost control management, re-entering wholesale and outlets and reducing dependence on promotions are additionally among the tasks.

Mulberry already outlined a number of moves through which these goals will take shape, including closing 12 loss making stores in APAC; new commercial partnerships with the likes of Flannels and John Lewis; an expansion of Mulberry’s partnership with US retailer Nordstrom; and a spending review designed to reduce operating costs by 25 percent on an annualised basis. A restructuring of the leadership team is also to be expected.

Further priorities cited by Mulberry include a brand refresh, with a repositioning back towards the British identity of the brand to be overseen by a new creative team tasked with driving “cultural relevance and seasonal innovations”, as well as the leveraging of insights “to deepen connections and drive demand”, putting to use data platforms and CRM tools to inform initiatives surrounding personalisation, in-store experiences and DTC operations.

Commenting on the new strategy, Baldo said the company needed to “get back to where we came from”, putting a renewed emphasis on Mulberry’s “Britishness, cultural relevance, creativity and responsible craftsmanship” that “sets us apart from the market”. He continued: "It is also clear to me that for Mulberry to succeed, the business model needs to be simplified - including re-prioritising the UK and taking a channel agnostic approach - while also ensuring we lead with creativity to reignite brand desirability and deepen connections with our customers.”

Billie O’Connor named CFO

The news of the strategy falls alongside the appointment of chief financial officer, Billie O’Connor, who will join Mulberry from February 17. O’Connor, who succeeds Charles Anderson, most recently served as CFO and chief information officer of Muller Group subsidiary Milk & More, where she helped drive a turnaround and an eventual sales process. The finance director has also previously held similar roles at the likes of Selfridges Group, Marks & Spencer and Walgreens Boots Alliance.

On her appointment, O’Connor said: "I am delighted to be joining the business as it embarks on this next chapter. Mulberry is a key part of Britain's luxury retail landscape and a brand I have always admired. The new strategy Andrea has outlined today is a clear turnaround plan with ambition for the future. I am looking forward to working with the talented team and craftspeople to execute this new strategy and drive sustainable financial growth."