Mulberry is charting a new course, unveiling a comprehensive turnaround strategy dubbed “Back to the Mulberry Spirit.” This initiative follows a period of disappointing performance, notably during the festive season, where the British luxury brand saw group revenue plummet by 18.3 per cent in the 13 weeks leading up to December 28, 2024. Retail sales within this period also experienced a significant dip of 16.5 per cent, while international sales declined by 8.7 per cent. The Asia Pacific region, a key market for luxury brands, proved particularly challenging, with sales dropping by a substantial 27.9 per cent.
The brand’s revival hinges on a three-pronged approach: simplification, brand realignment, and deeper customer engagement. Mulberry intends to streamline its operations by prioritizing the UK and US markets, restructuring its presence in Asia, and recalibrating its focus on the Chinese market. Cost reduction measures are also on the agenda, alongside a renewed emphasis on wholesale and outlet channels.
Further bolstering its leadership during this transformative phase, Mulberry has welcomed Billie O’Connor as its new Chief Financial Officer, effective February 17th. O’Connor brings a wealth of experience from prominent roles at various major companies.
Mulberry’s strategy involves a number of key actions. Twelve underperforming stores in the Asia-Pacific region will close. The brand is forging new retail partnerships, including collaborations with Flannels and John Lewis in the UK, and expanding its existing partnership with Nordstrom in the US. A thorough spending review is also underway, targeting a significant 25 per cent reduction in annual operating costs. A restructuring of the leadership team is also anticipated. The “Back to the Mulberry Spirit” plan signals a decisive effort to revitalize the brand and recapture its position within the competitive luxury landscape.
