Mulberry Group, the British luxury fashion brand, announced plans on Friday to raise £20 million (approximately $27 million) in fresh capital to support its growth strategy amid deepening

financial challenges.

Facing continued headwinds, the company said it anticipates further losses in fiscal year 2025. Mulberry is now shifting its focus back to its "British heritage" roots to better appeal to domestic customers, stepping away from its earlier expansion efforts in the Asia-Pacific region — a move similar to that of larger rival Burberry.

In response to declining demand driven by inflation and broader global economic pressures, the high-end bag maker is taking steps to streamline operations. CEO Andrea Baldo said the company is restructuring its head office and closing unprofitable stores to reduce operating costs heading into fiscal 2026.

While trading has met expectations since the end of March, Mulberry does not foresee significant revenue growth this year. The firm is forecasting a pre-tax underlying loss of £23 million for 2025, slightly worse than last year's £22.6 million loss. Annual revenue is also expected to fall to £120 million, down from £152.8 million the previous year. Photo by Edwardx, Wikimedia commons.