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
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.”
