Mulberry has appointed former Ganni CEO Andrea Baldo as its new CEO. He replaces Thierry Andretta, who is leaving the company with immediate effect after nine years at the helm.

The British luxury handbag brand announced on Tuesday that Andrea Baldo, who led the Danish fashion brand Ganni until the beginning of this year, will take on the role of CEO in September. Baldo has previously worked for fashion houses such as Coccinelle, Marni, and Diesel and is expected to focus on the "next chapter" of Mulberry.

The surprising departure of Andretta caused Mulberry's shares to rise by 3.6 percent, ending Tuesday's trading in London at 106 pence. However, since 2021, the stock has lost 72 percent of its value and now has a market capitalization of 68 million pounds.

In May, Mulberry reported a 4 percent decline in annual sales and warned that losses would be impacted by additional operating costs. This made Mulberry the latest luxury brand to report a slowdown in spending by affluent buyers.

Andretta had previously also blamed the lack of VAT-free shopping for declining sales, which contributed to the closure of the Bond Street store in London in February 2023.

In recent months, there has been a varying trend in the luxury segment. Companies like Hermès, the maker of the coveted Birkin bag, reported a 17 percent increase in quarterly sales, while Gucci owner Kering warned of declining profits in April.

In 2020, Frasers, the retail conglomerate under the control of sportswear mogul Mike Ashley, acquired a stake in Mulberry and currently holds 36.8 percent of the shares. Mulberry is a significant supplier to House of Fraser, the department store chain also owned by Frasers. Ashley's group also holds shares in Hugo Boss and owns the upscale department store chain Flannels.

The Singapore-based Ong family also holds a 56 percent stake in Mulberry.

Mulberry Chairman Chris Roberts stated that Baldos' "international fashion experience, creativity, and strategic thinking make him the perfect person for this role" and thanked Andretta for his contribution to the company.

Baldo was responsible for the international growth of Ganni and for sharpening the brand identity to attract a larger number of buyers. According to a statement from Mulberry, he was also able to demonstrate an improvement in sales and profitability performance.