Mulberry Group refocuses on UK, US markets, reduces China exposure

Published 30/01/2025, 11:40
© Reuters.

Investing.com -- Luxury retailer Mulberry Group has announced plans to reduce its business operations in China.

The group aims to simplify its structure and return to profitability. As part of this strategy, the company intends to increase its focus on the UK and US markets.

Over the 13-week period ending Dec. 28, the company reported a 16.5% decrease in retail sales. International sales also fell by 8.7%, with a notable decrease of 28% in the Asia Pacific region.

Mulberry has set ambitious financial targets for the medium term. The company aims to grow its annual revenue to over £200 million ($249 million) and achieve a 15% margin on adjusted earnings before interest and taxes. These targets are intended to enhance value for the company’s shareholders.

For the fiscal year ending March 30, 2024, the company reported a group revenue of £152.8 million. However, it also reported a pretax loss of £34.1 million.

In other developments, the company announced the appointment of Billie O’Connor as the new chief financial officer, effective from Feb. 17. This follows the company’s successful defense against a takeover attempt by its largest shareholder, Frasers Group.

The company also intends to streamline its product offerings and reduce its reliance on sales promotions. It plans to maintain its current price range.

Mulberry reported an 18% decrease in revenue over the Christmas period, which it stated was in line with board expectations. The company attributed this drop to the ongoing challenging macroeconomic environment.

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