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Mulberry swings to half-year pre-tax profit

Mulberry made a pre-tax profit of £0.1m for the six months ended September 30, up from a loss of £1.1m for the same period in 2014.

Mulberry

Total revenue at the luxury bag brand rose 5% to £67.8m. Gross profit margin increased 1.6% to 61.5%.

Retail sales including digital increased 12% to £50.4m during the period, with like-for-like sales up 10%.

However, as anticipated, wholesale sales declined by 11% to £17.4m, reflecting the slowdown of sales in Asia as well as Mulberry’s efforts to increase control over its distribution to independent retailers. Mulberry said it expects this trend to continue for the short term.

Online sales were up 20% on last year, and now represent 12% of total group sales, compared to 10% in 2014.

Mulberry said there had been efficiency gains in its UK factories, which now produce about half of its handbags.

Retail sales for the 10 weeks to December 5 were up 4%, or 5% on a like-for-like basis.

Mulberry said its 2015 Christmas video, #MulberryMiracle, has been viewed more than 1.7 million times.

New creative director Johnny Coca will show his first Mulberry collection as part of London Fashion Week in February 2016.

Chief executive Thierry Andretta said: “Our strategy is beginning to deliver tangible results in line with our expectations. We look forward to Johnny Coca’s first Mulberry collection, which will emphasise our Britishness and our heritage in leather, while delivering great quality within our targeted price range.

”We are excited about the future and look forward to the Mulberry brand fulfilling its potential both in the UK and internationally.”

Mulberry

Mulberry

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