Mulberry pins hopes on digital marketing and new creative director as it announces £1.1m loss
Mulberry is hoping the appointment of new creative director Johnny Coca and the continued use of “cost effective” digital marketing will help turn around a turbulent year for the luxury fashion retailer, which today announced a loss of £1m in its first half, a rapid decline on the £7.2m profit it posted over the same period last year.
Revenue plummeted 17 per cent to £64.7m, while sales dipped 9 per cent to £45.1m, compared to £49.5m in the same period in 2013, with like-for-like sales down 13 per cent.
Despite the loss, Mulberry said sales for the nine weeks to 29 November were “encouraging” and up 8 per cent on last year and 18 per cent including online sales.
Mulberry chairman Godfrey Davis said in a statement: “We have worked hard to re-engage with our customers and our tongue in cheek Christmas video #WinChristmas has been viewed well over one million times.
“After a difficult couple of years, the steps that we have taken to return Mulberry to growth are beginning to bear fruit and looking further forward, we expect to gain further momentum from the appointment of Johnny Coca as our new creative director."
Davis added that Mulberry has continued to invest in its stores and online and has implemented the first phase of an omni-channel project for its UK stores, which includes in-store online ordering, click & collect and in-store online returns.
In September Mulberry's shareholders launched an attacked on the brand at its annual meeting, with one commenting: “The company is going downhill steadily. It is in decline. Isn’t it time we have new directors into the company to take it forward?”
The retailer's previous creative director Emma Hill left Mulberry last year.