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Mulberry CEO unveils turnaround plan as it names new CFO

Mulberry CEO unveils turnaround plan as it names new CFO

Mulberry’s chief executive Andrea Baldo has unveiled his strategic plan to restore the luxury label to profitability “through simplification, brand realignment and enhanced customer connection”.

The turnaround plan coincides with the appointment of ex-Selfridges Group and M&S executive Billie O’Connor as Mulberry’s new chief financial officer following the resignation of its finance boss at the start of the year.

Mulberry said its recent performance has been “sub-optimal” after sales in the run up to Christmas plunged 18.3%.

Retail revenue dropped 16.5% in the 13 weeks to 28 December, with trade in the UK down 20.3%, which the retailer it attributed to a lack of exposure to outlet and wholesale channels.

Mulberry said it’s focus on the near-term was to restore profitability while it targeted an annual revenue of £200m in the mid-term. It reported £152.8m of sales in its most recent financial year.

As part of Baldo’s “Back to the Mulberry Spirit” strategy, he plans to refocus the business in the UK market and shutter 12 loss-making stores in the APAC region.

The company will execute a channel-agnostic cluster strategy and re-enter wholesale and outlets, including via its new commercial partnerships with Flannels and John Lewis.

It also plans to reduce promotional dependency and “maintain the unique price range setting Mulberry apart from the market”.

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This will be joined by a brand refresh, which will realign Mulberry’s identity as a British lifestyle brand through an improved approach to creativity and design.

Baldo, who joined July last year, said: “Our new strategy sets out our commitment to turnaround this business and return to sustainable profitability. 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.

“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.

Commenting on O’Connor’s appointment, Baldo said she brings a wealth of experience “working in the consumer retail space and has spent time leading finance teams through turnarounds”.

He added: “I am looking forward to working with her and while there is much to do, I am confident that with this new strategy and team we will drive long-term shareholder value and achieve our vision to become the most loved British lifestyle brand.”

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