Mulberry lost its British identity chasing China — then lost £31.8M in a year

Mulberry was founded in England in 1971, building a reputation for English countryside craftsmanship. Its Alexa and Bayswater bags became icons of British luxury. In 2012, revenue hit £168M. Then creative director Emma Hill departed in 2013 after creative differences, and the brand lost its product direction.

The company expanded aggressively into Asia, opening stores across China and APAC, while neglecting its UK wholesale and outlet channels. Revenue stalled. By 2024, UK sales had declined 20% and APAC retail revenue dropped 28% in a single quarter. Frasers Group made two takeover bids in October 2024, each rejected by majority owner Challice.

In January 2025, CEO Andrea Baldo announced the 'Back to the Mulberry Spirit' restructuring plan. It called for closing 12 loss-making APAC stores, cutting operating costs 25%, and refocusing on the UK and US. For the year ending March 2025, Mulberry reported a pre-tax loss of £31.8M. A £20M convertible loan facility secured in June 2025 provided temporary liquidity.

Closed 12 loss-making APAC stores, cut costs 25%, refocused on UK and US — but the £31.8M loss and £20M loan show the bill for losing its identity.

The departure of creative director Emma Hill in 2013 left the brand without a distinctive product identity for over a decade

Over-expansion in Asia diverted resources from the core UK market, where wholesale and outlet channels were neglected

Creative direction stagnated while competitors refreshed their product lines, making Mulberry bags feel less distinctive in a crowded luxury handbag market

A brand that chases growth in distant markets while neglecting its home base weakens both — the home market is where the brand identity is earned, not the expansion market

CEO Andrea Baldo's restructuring plan is ongoing. By H1 2026, six APAC stores had been closed, operating costs reduced 16%, and gross margin improved to 69%. The £31.8M loss narrowed to a £6.9M half-year loss by September 2025. The brand sold a minority stake and secured a £20M convertible loan from its majority shareholder Challice.