Mulberry Group has revealed positive preliminary results for the year ending March 27, showcasing its resilience during the pandemic and its strong recovery in recent months. The company has experienced a 45% increase in group revenue compared to the previous year since the end of the financial year. This growth has been driven by a robust recovery in the UK and continued growth in Asia, particularly in China where retail sales have surged by 46%.
However, Mulberry acknowledges that sales in the current year may still be below pre-Covid-19 levels due to the rationalization of its store network. Despite this, the company highlights significant growth in Asian markets and a strong digital performance as key factors contributing to its success in the last financial year. It’s important to note that overall revenue still fell by 23% to £115 million, primarily due to the impact of the pandemic and temporary store closures.
One notable achievement for Mulberry is the impressive 55% increase in digital sales, reaching £56.4 million. Online sales now account for 49% of total revenue, a significant boost from the previous year’s 24%. The company has also managed to improve its margins by reducing the level of markdown sales. International retail sales experienced modest growth of 4%, reaching £33.8 million. The Asia-Pacific region, in particular, saw a significant increase of 36% in retail sales due to ongoing development initiatives. Retail sales in China and South Korea saw impressive increases of 81% and 36% respectively. However, the rest of the world experienced a 27% decline in retail sales due to the impact of the pandemic.
Despite a decrease in gross profit, Mulberry saw a significant improvement in its operating result. The company achieved an underlying operating profit of £10.3 million, compared to an underlying operating loss of £9.3 million the previous year. Pre-tax profit also saw a positive turnaround, reaching £4.6 million compared to a loss of £47.9 million in the prior year.
Mulberry CEO, Thierry Andretta, expressed his satisfaction with the company’s performance, highlighting its strong growth in Asia and commitment to sustainability. Andretta attributed their success to leveraging their omnichannel position and serving the communities in which they operate. The company’s strategic progress in building Mulberry as a leading luxury brand was emphasized.
Mulberry’s success in the period was supported by innovative digital-first marketing campaigns, particularly as it celebrated its 50th anniversary. Notable campaigns included the relaunch of the sustainable version of its iconic Alexa bag, which saw a 360-degree global campaign engaging VIP customers and utilizing influencer seeding, content collaborations, and media partnerships. The relaunch was further strengthened by a strategic partnership with luxury online retail platform Farfetch. Additionally, for their 50th anniversary, Mulberry launched the Icon Editions collection which featured miniature versions of their most iconic silhouettes. Global influencer seeding and content collaborations played a crucial role in the success of this collection.
Overall, Mulberry’s ability to bounce back and return to profitability despite lower sales demonstrates the company’s resilience and strategic efforts to adapt to the challenges posed by the pandemic. With a strong recovery in the UK and continued growth in the Asian market, Mulberry is well-positioned for further success as it continues to build its brand as a leading sustainable global luxury brand.
Links:
1. Mulberry Official Website
2. Farfetch Official Website
