UK's Mulberry to raise $27 million as losses deepen in 2025

-Britain's Mulberry Group said on Friday it intends to raise 20 million pounds ($26.98 million) of capital to help fund its growth strategy, as the embattled luxury firm expects to log further losses in fiscal 2025.

Mulberry, following in the steps of larger rival Burberry, is refocusing on its 'British heritage' to resonate with domestic consumers, reversing a recent pivot it took to expand into the Asian-Pacific market.

The high-end luxury bag maker is streamlining its cost base to mitigate the effects of weakening demand as inflation and global economic uncertainties weigh on consumer spending.

The company is restructuring its head office and exiting unprofitable stores to deliver lower operating costs into fiscal 2026, CEO Andrea Baldo said.

Mulberry's trading has met expectations since March-end, but it does not expect material revenue growth this year.

The company forecast an underlying loss before tax of 23 million pounds for fiscal 2025, slightly higher than 22.6 million pounds a year ago.

It projected annual revenue to drop to 120 million pounds from the previous year's 152.8 million pounds. 

($1 = 0.7412 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Shailesh Kuber and Shreya Biswas)