Mulberry’s boss says a recovery is within reach
MULBERRY’S new chief executive Thierry Andretta said yesterday that he was confident Mulberry could return to its former heights or “do better” after an ill-fated move upmarket led to a 74 per cent fall in annual profits.
The luxury leather goods-maker has taken steps to repair the brand and win back shoppers by launching more affordable and creative handbag ranges such as the Lily and a collection designed by model Cara Delevingne.
Chairman Godfrey Davis, who handed over the reins to Andretta last month, said its strategy was working, with total sales up 17 per cent for the 10 weeks of its new financial year, and by 15 per cent on a like-for-like basis.
That follows a nine per cent decline in total sales in the year to 31 March, while Mulberry’s pre-tax profits plunged to £4.5m compared with £17.4m the previous year.
Andretta, who was already a board member at Mulberry before taking his new role, said he plans to grow Mulberry into a global luxury brand by opening fewer stores in “key strategic cities”, supported by a strong omnichannel experience.
He said the group hasn’t decided on where or how many store openings there will be. Mulberry has 70 owned stores after opening four last year.
Asked if he could restore Mulberry back to the height of its success in 2011 Andretta said: “I think we will do better. It is a difficult moment for the market right now but we have a great potential to grow again and launch a new face for Mulberry.”