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(Sharecast News) - Luxury handbag maker Mulberry said on Thursday that it has raised 20m from Challice and Frasers Group - its two largest shareholders - as it reported a slump in full-year revenue and a widening of underlying losses.
It also said it would raise up to 1.2m from other shareholders.
Mulberry said the net proceeds of the fundraising and retail offer will allow the group to make targeted investments to accelerate its future growth and meet its stated medium-term financial targets.
News of the fundraising came as Mulberry said group revenue in the year to 29 March 2025 fell 21% to 120.4m, "reflecting challenging macroeconomic conditions".
The underlying pre-tax loss widened to 23.7m from 22.6m a year earlier.
UK retail and digital revenue declined 20%, hit by macroeconomic conditions, uncertainty and inflationary pressures which have affected consumer spend and habits, Mulberry said.
Revenue in North America dipped 1%, meanwhile, supported by the opening of the Nordstrom online concession platform and a full-year trading of new Nordstrom stores.
Chief executive Andrea Baldo said: "We have made significant progress in laying the foundations for Mulberry's turnaround. Since launching our 'Back to the Mulberry Spirit' strategy in January, we have acted at pace to simplify the business, reduce costs, and refocus on our most profitable channels and markets. This is an ambitious transformation, underpinned by operational discipline and a commitment to placing creativity at the heart of everything we do.
"Whilst the external environment remains challenging, we are energised by the opportunities ahead and remain focused on restoring profitability and achieving our medium-term targets of over 200m in annual revenue and a 15% adjusted EBIT margin."
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