Mulberry is set to raise over £10m in cash as it swung to a loss in its last financial year.
The luxury fashion retailer posted a pre-tax loss of £34.1m in the year to March 30, down from £13.2m profit last year as group sales dropped 4% year-on-year to £152.8m, largely due to a “challenging” second half.
Mulberry has struggled in the first 25 weeks of its current financial year amid a slowdown in the luxury market, with group revenue down 18% and retail revenue falling 14% compared to last year.
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Newly appointed Mulberry CEO Andrea Baldo said: “Since joining, I have been working closely with our teams in the UK and internationally to drive swift, decisive actions.
“In the short term, we are focused on enhancing operational efficiency and implementing targeted product, pricing and distribution strategies to regain market share in our core market of the UK.
“While these immediate measures are critical, I am now fully committed to conducting a comprehensive review to develop a refreshed strategy that will position the group for both short-term recovery and long-term, sustainable growth.”
Mulberry chairman Chris Roberts added: “Over the course of the year, the macro-economic environment presented significant challenges for the luxury sector, with markets across the globe facing a tightening of consumer spending.
“Whilst the financial performance for the year was disappointing, we believe that the combination of the appointment of a new CEO, our new debt facility and the capital raising…will put the group on a firm footing to ensure we are well set up for future growth.”
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