UK's Mulberry to streamline operations after 19% revenue fall (updated)

Mulberry

19/11/2024 07:42

(Adds CEO statement in paragraph 3 reported figures in
paragraph 5, background throughout)
       Nov 19 (Reuters) - Mulberry Group  MUL.L  on Tuesday
said it will streamline operations after the British luxury
brand's revenue fell 19% in the first half of the year, partly
hurt by low consumer confidence in the UK, its biggest market.
    Sales of luxury brands have been faltering globally, as
price hikes and economic uncertainty shrink customer numbers. An
absence of recovery in China after the pandemic has also
pressured retailers' margins.
    "There is no question that our industry is facing a period
of significant uncertainty, driven by a challenging and volatile
macroeconomic environment that is impacting consumer confidence
in several markets, particularly in our home country," said CEO
Andrea Baldo, who has been in the role for less than 3 months.
    Mulberry recently rejected takeover approaches from
second-biggest shareholder Frasers  FRAS.L  due to lack of
support from its top investor, and in past few months appointed
a new CEO and raised fresh capital as it tries to turn around
its business. 
    The London-listed company reported global revenues of 56.1
million pounds ($71.08 million) for the six weeks ended Sept. 28
compared to 69.7 million pounds year ago.
        
  


($1 = 0.7892 pounds)

 (Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Yamini.Kalia@thomsonreuters.com;))