Mulberry has reported a jump in profits off the back of a one-off lease disposal and surging sales in the UK and Asia Pacific markets.
For the 53 weeks ending April 2, 2022, the luxury fashion retailer reported a 32% in group revenue to £152.4m and profit before tax of £21.3m – including a one-off profit of £5.7m from the disposal of a lease in Paris.
For the period, UK retail sales were up 36% to £89.8m, while sales in China were up 36% to £89.8m and up 11% in South Korea, which contributed to the 28% increase in Asia Pacific retail sales.
Digital sales were down 16% to £47.5m as customers switched back to stores following store re-openings. However ecommerce was still up 31% compared to pre-Covid levels.
During the period five new stores were opened in China, and four in South Korea, further supporting our ongoing growth and development in the Asia Pacific region.
In terms of sustainability, Mulberry said that 88% of the collection now using leather sourced from environmentally accredited tanneries; this will increase to 100% by end of 2022.
It also launched its first ever “pre-loved bags” resale programme during the period.
In terms of current trading, Mulberry said that sales for the first 12 weeks of the new financial year were 5% ahead of last year, supported by a 29% increase in wholesale.
However, omnichannel sales are down 1%, with store closures in China due to ongoing Covid-19 restrictions being blamed.
Mulberry chief executive Thierry Andretta said: “We have made great strides in our mission to be the leading responsible British lifestyle brand, and a pioneer in sustainability. Mulberry continues to delight customers with our beautiful products, made to last with the highest quality, lowest carbon materials in our UK factories.
“The strength of our financial results reflects positive customer response to our product as well as the strategic decisions we have made over the past five years, and I want to take this opportunity to thank my colleagues for their commitment and contribution to the business.
“Whilst the economic and geo-political outlook remains uncertain, we are an iconic international brand with a clear strategy for future profitable, cash-generative growth. We remain well placed to continue to deliver sustainable returns to the benefit of all our stakeholders.”
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