Mulberry raises £20m from major shareholders as sales and profits fall

For the 52 weeks to March 29, 2025, Mulberry reported an underlying loss before tax of £23.7m, up from a loss of £22.6m in 2024.

Mulberry reported a 21% fall in group revenue from £152.8m to £120.4m, which the luxury player said reflects the “challenging macro economic conditions”.

UK retail and digitial revenue at the retailer was down 20% as “uncertainty and inflationary pressures” hit consumer spend and shopping habits.

Mulberry said it is “acting at pace” on its new ‘Back to the Mulberry spirit’ strategy in a bid to return to profitability.

The luxury retailer also announced it has raised £20m in additional capital from major shareholders Challice Limited and Frasers Group in order to drive its growth strategy.

In terms of outlook, Mulberry stated that trading so far has been “in line with expectations” and that for the nine weeks to June 1, 2025, sales dropped 18% year on year.

Mulberry said in the mid-term it plans to achieve annual revenue in excess of £200m and to hit an adjusted EBIT margin of 15%.

Alongside its trading announcement and fundraising update, Mulberry also announced the appointment of Frasers Group chief acquisition officer James France to its board as a non-executive director, effective July 30, 2025.

Mulberry chief executive Andrea Baldo said: “We have made significant progress in laying the foundations for Mulberry’s turnaround. Since launching our ‘Back to the Mulberry Spirit’ strategy in January, we have acted at pace to simplify the business, reduce costs, and refocus on our most profitable channels and markets. This is an ambitious transformation, underpinned by operational discipline and a commitment to placing creativity at the heart of everything we do.”

“At the same time, we are reinvigorating the brand to reassert its cultural relevance and emotional resonance with customers. The launch of our new campaign, ‘A Return to Somerset’, marks an important milestone, celebrating our roots, values and the distinct British voice that defines Mulberry.”

“Today, with our strategy clearly defined and delivering the expected results, we received a further demonstration of the support from our shareholders. We welcome the additional capital injection from both our major Shareholders, which will enable us to keep moving with pace – investing in product, digital, and international growth to deliver long-term value and the appointment of James France to the Board.”

“Whilst the external environment remains challenging, we are energised by the opportunities ahead and remain focused on restoring profitability and achieving our medium-term targets of over £200 million in annual revenue and a 15 per cent. adjusted EBIT margin. I want to thank our teams across the business. Their energy, creativity, and resilience have been instrumental in driving the progress to date and will be just as vital in the journey ahead.”