Mulberry raises 20 million pounds to boost turnaround plan, aiming for profitability and growth

From Yahoo Finance: 2025-06-20 11:26:00

Mulberry’s owners plan to raise an additional 20 million pounds to boost the brand’s turnaround, focusing on core stocks and sales channels like outlets and e-commerce. Despite a projected 21% revenue drop to 120 million pounds for fiscal 2025, the company aims to achieve profitability through cost savings and strategic investments.

Investors responded cautiously, causing a 15.1% drop in Mulberry’s shares, valued at 95.50 pence in midday trading in London. The company’s market capitalization stands at 66.9 million pounds. Trading in the new fiscal year has met expectations, with limited revenue growth anticipated.

As part of its turnaround strategy, Mulberry announced 5.9 million pounds in annualized gross cost savings and a plan to reduce head office staff by 25%. CEO Andrea Baldo is focused on rebuilding profitability and gross margin while aiming for revenues of 200 million pounds and an EBIT margin of 15%.

Mulberry is expanding its distribution deals with partners like Nordstrom in the U.S. and David Jones in Australia, along with new deals in the U.K. with Flannels and John Lewis. The company is also streamlining operations, exiting unprofitable stores, and emphasizing core handbag families like the Bayswater, Alexa, and Amberley.

CEO Baldo’s rejuvenation strategy, “Back to the Mulberry Spirit,” aims to simplify operations, realign the brand, and enhance customer connections to restore the brand’s cultural relevance. The company is focused on driving customer engagement through brand-building initiatives and operational enhancements.

The latest fundraising of 20 million pounds for Mulberry was prompted by a year-end review of the company’s performance and the challenging economic environment. Management aims to maintain momentum and accelerate efforts to turn the company around, building on a previous 10.4 million pound fundraising initiative.

Majority owners Christina Ong and Ong Beng Seng underwrote an initial 10.4 million pound fundraising for Mulberry last fall to support the turnaround plan. Challice has expressed willingness to underwrite the latest fundraising in full if needed. The deal structure is being determined, with discussions ongoing with Frasers Group, a significant minority shareholder.



Read more at Yahoo Finance: Mulberry Raises a Further 20 Million Pounds to Supercharge Turnaround Plan