Mulberry: H1 losses widen and revenues decline by 19 percent

British handbag maker Mulberry reported a 19 percent decline in revenues to 69.7 million pounds for the six months to September 30, 2024, while the company’s losses widened by 23 percent to 15.7 million pounds.

Mulberry appointed Andrea Baldo as its new chief executive in September.

Commenting on the half year trading, Baldo said in a statement: “Though I’ve only been in the role of chief executive for under three months, the first-half results illustrate the clear need to reprioritise and rebuild the business. We are now working on initiatives to renew the brand’s relevance, initially for UK consumers and then for our international audience.”

The company’s sales in the UK declined by 14 percent year on year to 31.2 million pounds, while store sales were down 17 percent and online sales dropped by 8 percent.

In the Asia Pacific region, sales declined by 31 percent to 9.3 million pounds, with revenues in China and South Korea down 52 percent and 29 percent respectively.

The company said that sales across the rest of the world, including Europe and the US increased marginally by 2 percent to 10.2 million pounds.

Franchise and wholesale sales declined by 46 percent to 5.4 million pounds with declines across all countries.

“In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital and strengthen our cash position. This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation,” added Baldo.

Mulberry added that the current macro-economic environment, including ongoing inflationary pressures, continues to present uncertainty and challenges for its business.