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Mulberry stock drops 39% – Ganni’s ex-CEO replaces Andretta

Mulberry stock drops 39% – Ganni’s ex-CEO replaces Andretta

Mulberry’s share price has fallen 39% since January, reflecting a global downturn in the luxury sector, particularly due to reduced spending by Asian shoppers. Facing declining sales and a sharp drop in the share price, luxury giant Mulberry has decided to part ways with its CEO, Thierry Andretta. Andretta will be succeeded by Andreas Baldo, who was previously CEO of Ganni, a mid-market luxury brand. Baldo also has experience at Coccinelle and Marni Group.

Andretta, who has been at Mulberry since 2015 and previously worked at rival brands LVMH and Kering, is stepping down amid the challenges. However, the company has faced difficulties in recent months amid the broader downturn in the global luxury goods sector. The downturn has been particularly pronounced in China and other parts of Asia, where rising inflation and higher interest rates have hit disposable incomes.

As a result, consumers in key markets like China are cautious about their luxury purchases, focusing more on essential items than discretionary spending like handbags, watches and luxury gadgets.

Chris Roberts, chairman of Mulberry, said in a press release that after an extensive search process it became clear that Andreas Baldo’s international expertise in fashion branding, creativity and strategic insight made him the ideal candidate for the position.

New CEO Baldo expressed his excitement, saying in the press release that he was thrilled to join Mulberry at such a pivotal time and to build on 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 higher rents, overheads and consumer reluctance to make major purchases. Long spells of wet and gloomy weather this year have further exacerbated these challenges. Other brands including Marks & Spencer, Frasers and Next have seen similar falls in their share prices in recent days.

Danni Hewson, head of financial analysis at AJ Bell, said in an emailed statement that while inflation may have returned to “normal” levels, the British public still feels financially constrained and is reluctant 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, drawing on his experience in improving brand identity, sales and profitability. Hewson concluded that the retail industry, particularly in the luxury sector, is fiercely competitive, similar to the ever-changing trends in fashion. To survive in such an environment, brands must ensure they are the first choice when consumers are willing to spend more freely again.

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