Mulberry says demand for its luxury products has returned to pre-pandemic levels with sales in the UK and Asia generating a spike in revenue as it prepares to benefit from the holiday shopping season. ceremony.
The leather goods retailer, which cut 25% of staff last year because of weak demand, said sales improved in October and November but any restrictions during the festive period could affect affect their optimistic outlook.
Group revenues for the six months to September 25 rose to £65.7 million, up 34%, leaving Mulberry a pre-tax profit of £10.2 million compared with a loss of £2.4 million last year. .
Shares rose 68p or 22.5% to close at 370p. Since January, the stock is up 62.3%.
Thierry Andretta, chief executive officer, said the company’s goal is “to continue to lead the luxury industry” and that he is “very proud of what our team has achieved”, noting the change. This change is sticking with the long-term strategy of developing its store. and online services.
“After spending a good time online, you want to enjoy life again and have a good customer experience. With a luxury product, the sensory experience is completely different, customers want to compare or ask questions,” he said.
Andretta says Mulberry has resisted the price cut and the profit margin is 69%.
Founded in Somerset in 1971, Mulberry has 40 stores in the UK and a strong presence in Korea, Japan and China. It employs about 1,200 people.
The company said that over the next six months, it will spend more of its “significant cash reserves” on marketing to build worldwide brand awareness. According to Andretta, China is a highly regarded target for “the most potential front of housing growth”.
The company says its UK factories and careful planning have helped it navigate supply chain issues.
Retail sales for the eight weeks to November 20 were up 35% year over year.
UK retail sales rose 36 per cent to £38m, £10m more than last year. International retail sales account for 40% of the group’s revenue. Digital sales were £19.1 million, down 19% from last year when stores closed, but this was offset by an 87% growth in stores, generating sales. £36.5 million in revenue.
