Mulberry, the renowned British luxury brand, has encountered its fair share of changes and obstacles over the past year. Despite experiencing some setbacks, the company has managed to make significant strides in its international business expansion and direct-to-customer approach. The latest financial report for the 53-week period ending in March revealed a 7% uptick in international revenue, totaling £48.1 million. Conversely, UK revenue took a slight dip of 6% to £121.6 million, resulting in an overall revenue decrease of 2% to £166.3 million.
The adjusted pre-tax profit witnessed a significant drop from £8 million to £1 million, largely due to various expenses such as the launch costs in South Korea and transitioning John Lewis from a wholesale to a concession-based model. The reported pre-tax profit also displayed a loss of £5 million as opposed to a profit of £6.9 million in the prior year.
Despite facing challenges, recent trading data paints a more positive picture, with retail sales climbing by a notable 13% for the 11-week period ending on June 15. International sales saw a remarkable surge of 31%, while the UK market also experienced a commendable rise of 7%. Digital sales saw an impressive increase of 53% during the same timeframe, buoyed by the rollout of a new global concession on Farfetch, as well as the opening of new stores in bustling cities like New York City and Dubai.
In the last year, Mulberry has placed a strong emphasis on consolidating its distribution channels through retail expansions and strategic partnership agreements. The establishment of new subsidiaries in pivotal markets like Japan and South Korea has played a crucial role in bolstering revenue growth in the Asian region. Moreover, digital sales have surged by 27% thanks to lucrative collaborations in China and the successful shift of John Lewis to a concession-based business model.
Thierry Andretta, the CEO of Mulberry, remains bullish on the potential for further expansion in international and digital sales, despite acknowledging the uncertainties looming over the UK market. The company’s future roadmap includes plans to intensify investment in Asian ventures, enhance the global digital platform, and optimize the UK retail network to fuel long-term growth and prosperity for Mulberry.
To read more about Mulberry’s latest financial performance, visit their official website here. Additionally, for detailed insights into the UK luxury fashion market, check out this informative article here.
