Mulberry’s half-year results (to the end of September) showed sales continuing to rise, although margins were down slightly and the company reported wider losses than a year ago as it continued to invest in future growth.
The business has stated that it is “well prepared for the second half of the financial year, which is weighted in trading given the important festive trading period” .
According to the company’s H1 results, group revenues increased 7 per cent (or 8 per cent at constant exchange rates) to £ 69.7 million. Despite being hampered by the broader economic situation, UK retail sales increased 6 per cent to £ 36.2 million.
International retail sales (39 per cent of total retail revenues) increased by 34 per cent (or 35 per cent at constant rates) to £ 23.5 million, owing in part to the company’s goal of bringing ownership of abroad outlets, including Sweden and Australia, in-house.
However, the company is still making significant progress in some outside countries, and revenue in the United States climbed by 38 per cent (42 per cent at constant rates), owing to greater brand awareness, according to the company.
Retail sales in Asia Pacific increased by 13 per cent (or 18 per cent at constant rates) to £ 13.5 million, including the first full year of ownership of its Australian outlets. Nonetheless, underlying retail sales declined by 7 per cent (or 3 per cent without currency rate variations) as a result of the “challenging China macroeconomic climate and reduced footfall across the region.”
The gross margin of 69 per cent was slightly lower than the prior period’s margin of 71 per cent, and the underlying loss before tax of £ 12.3 million increased from £ 2.8 million the previous year.
Collaborations with Paul Smith, Axel Arigato, and Stefan Cooke, according to the firm, “drove further global awareness of the Mulberry brand,” and product innovation continued during the decade with the development of new bag families such as the Islington and the Retwist.
Pop-ups also allowed it to “efficiently reach new audiences, with Leccio providing us with invaluable insights into the Italian market.”
CEO Thierry Andretta said, “Against a challenging macro-economic backdrop, which is impacting the entire luxury landscape, we have continued to invest in our long-term future.
