British luxury brand Mulberry has announced plans to reopen its store in Paris once international tourism resumes, showing resilience in the face of global volatility. The company has reported strong financial results for the 53 weeks leading up to April, with group revenue for the first 12 weeks of the new financial year up 5% compared to the previous year. The wholesale business also saw a significant increase of 29%. However, Mulberry has faced challenges, with omnichannel revenue declining 1% in the first quarter due to Covid-19 restrictions in mainland China. The company anticipates continued growth but at a slower rate due to geopolitical issues, inflationary pressures, and Brexit-related challenges.
Despite these obstacles, Mulberry’s annual figures demonstrate a promising recovery post-Covid-19. Group revenue increased by 32% to £152.4 million, and the gross margin rose to 71.7% from 63.6% the previous year. Retail sales in the UK surged by 36% to £89.8 million, bolstered by the reopening of stores and the success of made in the UK production supply chain and marketing campaigns. Meanwhile, retail sales in China rose by 59%, and South Korean retail sales increased by 11%, contributing to a 28% overall increase in Asia Pacific retail sales. International retail sales as a whole grew by 20% to £40.4 million. While the company plans to focus on Asia and the UK, it has not provided specific details on its performance in Europe or the US.
Mulberry experienced a decline in digital sales as customers shifted back to physical retail, but digital sales still saw a 31% increase compared to the pre-pandemic period. The company recorded a profit before tax of £21.3 million, significantly higher than the previous year’s profit of £4.6 million, even when accounting for a one-off profit from the disposal of a lease in Paris. Mulberry attributes its improved performance to its strategic focus on full-price sales, increased volume efficiencies, strong digital presence, and new store openings. During the reporting period, the company opened five new stores in China and four in South Korea.
CEO Thierry Andretta expressed satisfaction with Mulberry’s progress, emphasizing the company’s commitment to becoming a leading responsible British lifestyle brand and a pioneer in sustainability. He highlighted Mulberry’s clear strategy for future growth and profitability, as well as its ability to deliver sustainable returns to stakeholders despite uncertainties in the global economic and geopolitical landscape.
Useful links:
1. Mulberry Promise
2. Mulberry’s Story
