Mulberry CEO unveils profit recovery plan as it hires new CFO

Mulberry CEO Andrea Baldo has outlined plans to restore the luxury brand back to profitability through simplification, brand realignment and enhanced customer connection.

Having completed a strategic review ahead of its new strategy - 'Back to the Mulberry Spirit' - Baldo has also appointed Billie O'Connor as its new Chief Financial Officer, effective from 17 February 2025.

O'Connor brings experience from working in the consumer and retail sectors, most recently as the CFO and CIO of Milk & More, which she joined to drive a turnaround and eventual sale.

Prior to this, she held various finance roles at Selfridges Group, Marks & Spencer, Walgreens Boots Alliance and Esporta Group.

"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," says O'Connor.

"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."

The appointment coincides with Mulberry's trading update for the 13 weeks ending 28 December 2024, with its performance in the important festive period described as "satisfactory".

Revenue declined 18.3%, as a result of the continuing challenging macro-economic environment. Meanwhile, retail sales declined 16.5%, with UK sales down 20.3% and international sales down 8.7%.

Mulberry recognised that its recent performance has been "sub-optimal" and envisages a two phased strategy to address this.

In the near-term, the company's focus will be on rebuilding gross margin and restoring profitability; and over the mid-term, the business is targeting annual revenue of £200 million.

To achieve this, the brand plans to simplify the business by...

• Refocusing on the UK market, accelerating growth in the US and re-aligning operations in Asia with a reduced emphasis on China.
• Executing a channel-agnostic cluster strategy in all markets and re-entering wholesale and outlets.
• Active and continuous cost control management across the company to drive efficiencies while protecting craft and culture.
• Implementing a focused product offering, reducing promotional dependency and maintaining the unique price range, setting Mulberry apart from the market.

It will also undergo a brand refresh, realigning Mulberry's identity as a British lifestyle brand and "reinvigorating" its cultural relevance, as well as leveraging insights to deepen connections and drive demand.

"Our new strategy sets out our commitment to turnaround this business and return to sustainable profitability," said Baldo.

"We need to get back to where we came from and return to the spirit of Mulberry. First created by Roger Saul over 50 years ago, it is this Britishness, cultural relevance, creativity and responsible craftsmanship that is so loved by our customers. These strengths, along with our unique price position, sets us apart from the market.

"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. We are already putting our strategy in action, including through new wholesale agreements with Flannels and John Lewis."