Mulberry has said there is a "clear need to reprioritise and rebuild the business", after its group revenue fell by 19% to £56.1m in the six months to 28 September.

The luxury clothing firm saw its UK retail sales decrease by 14% to £31.1m in the same period, while sales in the Asia Pacific region dropped by 31% to £9.3m.

It recorded a loss before tax of £15.3m, which has been attributed to reduced revenue and margin being partially offset by lower operational costs.

Despite these results, Mulberry said its digital performance "continued to be robust", with sales representing 33% of group revenue. Its UK website saw sales increase by 6% and represented 67% of UK digital revenue.

Chief executive officer (CEO) at Mulberry, Andrea Baldo, said: "Though I've only been in the role of CEO for under three months, the first half results illustrate the clear need to reprioritise and rebuild the business. We are now working on initiatives to renew the brand's relevance, initially for UK consumers and then for our international audience.

"In response to current market conditions, we have taken decisive steps to streamline operations, improve margins, reduce working capital, and strengthen our cash position. This has also meant reviewing our internal team structure to ensure we become a leaner, more agile organisation. Additionally, we've made strategic adjustments to our product, pricing, and distribution strategies, and we've begun discussions with luxury wholesale partners to ensure we are present wherever our customers shop."

The results come after Frasers pulled out of a takeover bid for Mulberry, stating that the luxury clothing brand had a "clear lack of commercial plan", leaving it in a "very difficult financial position".

Looking ahead, Mulberry said that wider macroeconomic environment will "continue to present uncertainty and challenges".

It added that it continues to take "appropriate cost actions" and manage inventory levels to "ensure they align with revenue expectations".

Investment director at AJ Bell, Russ Mould, concluded: "Frasers was right when it implied that Mulberry was in a mess. The luxury goods company’s half-year results show losses getting bigger, margins falling, sales down in all regions and an outlook statement soured by the words ‘uncertainty’ and ‘challenges’.

"Baldo isn’t blind to the problems. His response is to cut costs, make the company more efficient, improve margins and rebuild the company’s financial strength. Those things won’t happen overnight. It’s now a waiting game to see if new life can be breathed into the business."

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