Mulberry’s Share Price Declines by 39% – Ganni’s ex-CEO to Replace Andretta

Mulberry’s share price has declined by 39% since January, reflecting a global downturn in the luxury sector, particularly due to reduced spending by Asian shoppers. Due to falling sales and a sharp decline in its share price, luxury giant Mulberry has decided to part ways with its Chief Executive Officer, Thierry Andretta. Andretta will be succeeded by Andreas Baldo, who previously served as the CEO of Ganni, a mid-range luxury brand. Baldo also has experience at Coccinelle and Marni Group.

Andretta, who has been with Mulberry since 2015 and has previously worked at rival brands LVMH and Kering, is stepping down amidst these challenges. However, the company has faced difficulties in recent months due to the broader decline in the luxury goods sector globally. This downturn has been particularly pronounced in China and other parts of Asia, where rising inflation and higher interest rates have impacted disposable incomes.

As a result, consumers in key markets like China are exercising caution in their luxury purchases, focusing more on essential items rather than discretionary spending on products such as handbags, watches, and luxury gadgets.

Chris Roberts, Chairman of Mulberry, stated in a release that following an extensive search process, it became evident that Andreas Baldo’s international expertise in fashion branding, creativity, and strategic acumen made him the ideal choice for the role.

Incoming CEO Baldo expressed his enthusiasm, stating in the release that he was excited to join Mulberry at such a pivotal juncture and to build upon the brand’s strong sustainability credentials. He looked forward to leading the company and its talented team into the next phase.

Several British high street and luxury brands have also felt the impact of rising costs recently, including increased rents, overheads, and consumer reluctance towards major purchases. Extended periods of wet and gloomy weather this year have further exacerbated these challenges. Other brands like Marks & Spencer, Frasers, and Next have similarly seen declines in their share prices in recent days.

Danni Hewson, Head of financial analysis at AJ Bell, commented in an email note that while inflation may have returned to “normal” levels, the British public continues to feel financial constraints and is hesitant to make discretionary purchases. Hewson added that Burberry also faced challenges, coinciding with the news of Mulberry’s CEO departure. Mulberry’s decision to appoint Andreas Baldo was seen as a move to navigate these turbulent waters, leveraging his experience in enhancing brand identity, sales, and profitability. Hewson concluded that retail, particularly in the luxury sector, is fiercely competitive, akin to the ever-changing trends of fashion. Surviving in such an environment requires brands to ensure they are the first choice when consumers are ready to spend more freely again.

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