Shares in luxury fashion firm Mulberry fell yesterday as it revealed a sharp decline in annual sales and announced that it had raised £20million from its largest shareholders.
The handbag maker said revenues for the year to March 29 plunged by 21 per cent to £120million, blaming a slowdown in the wider luxury market. Pre-tax losses widened to £24million.
The firm said its two largest shareholders, Singapore-based Challice and Sports Direct owner Frasers Group, supported a £20million fundraise.
It will also appoint Frasers executive James France to the board of directors. Shares fell 5.1 per cent, or 5p, to 92.5p.
Mulberry, known for its collection of bags in collaboration with TV presenter Alexa Chung (pictured), is attempting to turn around its fortunes under chief executive Andrea Baldo, who took over in September.
Yesterday, Baldo said Mulberry had made ‘significant progress’ but performance over the past year has been affected by ‘macro-economic conditions, uncertainty and inflationary pressures’.
Mulberry’s turnaround plan includes the closure of 12 shops in Asia, and a ‘refresh’ of its brand identity.
Sales slump: Mulberry said revenues for the year to March 29 plunged by 21% to £120m, blaming a slowdown in the wider luxury market
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