Pennsylvania
The fashion brand said it was completing an internal review, with the aim of creating a “leaner” operation.
The boss of luxury retailer Mulberry says he must “rebuild the business”, after sales fell by almost a fifth in the last six months.
The Somerset-based designer company said the shareholder group's revenue fell 19% to £56.1 million in the six months to September 28.
He added that sales were difficult in the face of “a challenging business environment and uncertain macroeconomic trends.”
Newly appointed CEO Andrea Baldo says it has a “refreshed business strategy” and has cut 85 positions as part of the shake-up.
The job cuts, affecting around a quarter of its 350 staff, mainly affected its design headquarters in London, as well as some office workers in Somerset.
Mulberry is one of many companies that have been hit hard by a sharp decline in luxury spending around the world.
Revenue from its wholesale and franchise businesses fell 46% to £5.4m as it was particularly affected by partners in Italy and Denmark reducing their orders due to conditions difficult.
At the same time, UK revenue fell 14% to £31.3 million amid “low consumer confidence”.
The company also saw its pre-tax losses widen to £15.7 million in the period, compared to a loss of £12.8 million a year earlier.
It comes a month after Mike Ashley's Frasers Group – which has a stake of around 37% in the company – abandoned plans for a £111m takeover offer.
Mr. Baldo said: “There is no doubt 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 country of origin.
“However, thanks to the teams' efforts in cost reduction, a strengthened balance sheet, a renewed brand-focused approach and an updated commercial strategy – the details of which I will share in due course – I am confident that we are making the right decisions to return Mulberry to profitability.”
