Mulberry CEO ousted in surprise move

The chief executive of Mulberry paid the price for the slowdown in the sales of luxury goods, heading for the exit with immediate effect.

Thierry Andretta, the boss since 2015, is being replaced by Andrea Baldo who was most recently in charge of Ganni.

Andretta, paid at least £1 million a year, can expect compensation for the nature of his departure.

A brusque statement to the stock market gave no reason for the sudden switch, merely noting that Andretta was stepping down from the board and leaving the company immediately.

Baldo does not start his new job until September 1.

Last May, Mulberry reported a 4% fall in annual sales. His message then was downbeat, telling shareholders:

“Mulberry has not been immune to the broader downturn in luxury spending experienced in recent months, particularly in the UK and Asia. This decline was partially offset by positive trading in the US, where we have benefited from increased brand awareness.

“Looking ahead, the trading environment in the UK and China remains challenging and we do not expect this to change in the short-term.”

While fans of the brand include the Princess of Wales and Cara Delevigne, that has not been enough.

Luxury bosses say they in particular suffer from high VAT – a “tourist tax” that makes it cheaper t buy high end goods in Paris or elsewhere.

Chris Roberts, chairman, said: "I am pleased to be able to announce the appointment of Andrea Baldo. Following our search process, it was clear that Andrea's international fashion brand expertise, creativity and strategic thinking meant he was absolutely the right person for this role. I'd also like to thank Thierry for his contribution to the business."

Andrea Baldo said: "I am thrilled to join Mulberry at such a pivotal moment and to build upon the strong sustainability credentials of this iconic luxury brand. I look forward to leading the business and its talented team into the next chapter."

Mulberry shares fell 6% to 96p which leaves the business valued at just £58 million. The stock is down 65% in the last five years.