Mulberry full-year profits soar

Mulberry, which opened nine new stores worldwide in the period, said that sales increased 69% to £121.6m.

In the UK retail sales in Mulberry’s own 44 stores and department store concessions increased for the year by 40%, or 39% on a like-for-like basis.

Retail sales from Mulberry’s own stores, department store concessions and website in the UK, France, the Netherlands and North America increased to £73.5m up by 44%, or 43% on a like-for-like basis, compared to the previous year.

Sales through mulberry.com, leaped by 64% to £9.2m, accounting for 8% of total group sales, up from 7% in 2010.

Internationally Mulberry continued to perform strongly with revenues rising 145% to £40.5m, up from £16.6m in 2010.

Chairman and chief executive Godfrey Davis said that Mulberry had delivered a “step-change” in profitability during the year.

Mulberry reported that trade this year, its 40^th anniversary year, continues to be strong. Retail sales climbed 38% in the 10 weeks to June 4 and like-for-likes advanced 42%.

With five months selling left of the Autumn 2011 season Mulberry said that third-party orders are already 38% ahead of Autumn 2010 total orders.

“Strong demand in all markets has continued into the new financial year and the outlook for the Mulberry brand is positive,” said Davis. “While we remain cautious about the global economic environment, we are focused on accelerating our international expansion.”

As well as opening a new London headquarters on Kensington Church Street last year, Mulberry is also focused on expanding production capacity at its Somerset factory. The company said that this is already underway, creating 50 new manufacturing jobs and adding 30% to UK production capacity.  

In February Mulberry called for tax breaks to support manufacturing in the UK.