Mulberry bags benefit from surge in sales after lockdown

Luxury fashion brand Mulberry reported an increase in sales after the lockdown that brought it back to profits.

The Somerset-based retailer said sales jumped 34% in the six months to September 25 to £ 65.7million, from £ 48.9million a year ago when stores were closed for long periods during national shutdowns.

He said his “good performance” since the stores reopened had enabled him to generate a pre-tax profit of £ 10.2million, compared to a loss of £ 2.4million for the same period of the year last.

The company, known for its leather products, including handbags, said a strategic focus on full-price sales and increased volume efficiency had helped profit margins drop from 59 % to 69%.

The company, which celebrated its 50th anniversary this year, said it lost sales due to fewer tourists able to travel to the UK, but these were replaced by strong growth in its markets Asian.

Retail sales in China were up 38%, which contributed to a 23% increase in retail sales in Asia-Pacific to £ 11.8million (from 9.5million in 2020).

In the US, sales rose 57% to £ 3.3million, while franchise and wholesale sales rose 67% to £ 10.1million.

Figures released by the company on Wednesday November 24 showed that while sales at its retail stores rose 87% to £ 36.5million from £ 19.5 a year earlier, its digital business saw a downturn. down 19% for the same period, from 23.4 pounds sterling. m in 2020 to £ 19.1million in 2021.

Despite this, Mulberry said digital sales made up 29% of the group’s revenue during the period, which bosses said reflected the chain’s “continued strength”.

The Chilcompton-based company added that a combination of its UK-based factories (including Bridgwater), planning and agile supply chains meant that the global logistics challenges had not had any problems. impact on the execution of its sales channels.

Mulberry Managing Director Thierry Andretta said: “I am proud of Mulberry’s performance during the period. Our long-term strategy of innovative and sustainable products manufactured at our carbon neutral factories in Somerset, our market-leading omnichannel distribution model and expansion in Asia-Pacific, delivered strong financial performance.

Mr Andretta added that the company is now focused on meeting carbon reduction targets, including a new collection of bags which it says will use the world’s low-carbon leather via chains of local and transparent procurement.

Mr Andretta said: “Product innovation and sustainability are at the heart of our strategy, as evidenced by the recent launch of our ‘lowest carbon collection’, further supporting the commitments we made in our manifesto. “Made to Last” and our goal of achieving zero carbon. emissions by 2035 ”.

“The bold decisions we have taken to focus on our production capabilities in the UK mean that we are well positioned for the festive trading season and beyond. “

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