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Mulberry warns of shrinking wholesale sales

Mulberry said wholesale sales were likely to fall back 15% for autumn 09 and shrink by a further 4% for spring 10, after its customers slashed their buying budgets.

Wholesale sales increased by 15% for the year to March 31 while total sales rose 14% to £58.6 million. Like-for-like retail sales were up 2%.

However pre-tax profits fell back to £4.2 million from £5.2m the previous year but Mulberry said that the performance was ahead of market expectations.

Current retail trading was strong with UK retail sales up 21% on a like-for-like basis for the first 10 weeks of the year, boosted by demand for its Mitzy bag range and an influx of tourist shoppers, especially in London.

Mulberry said that like-for-likes rose 11% at its full price stores, and by 45% in its discount stores over the period.

Mulberry said that investment in stores, new products, marketing and strengthening its management team had helped increase its market share.

Muberry chairman and chief executive Godfrey Davis said that sales growth in the second half of the year slowed until December as the economic downturn took hold, but picked up during the last two weeks of December and into the new year.

He said: “We have achieved another year of strong sales growth, delivering an increase of 14% year on year. These results reflect the continued investment int he brand. With our strong balance sheet we are well placed to continue to build Mulberry as a global brand. The current financil year has started well.”

Mulberry is looking to relocate its London offices and showrooms next year.

Lisa Montague, who left her position as chief operating officer of Mulberry earlier this month, will join luxury brand Loewe as chief executive in September.

 

Readers' comments (1)

  • ewald widiner

    Mulberry times are over, at least in Shanghai. It’s a very short live the fruit of the Mulberry Tree has got, about 3-4 weeks only sold at the vegetable and fruits shop’s, they are nicely wrapped and packed with a cellophane window so you can look into the box.
    Anyhow, would it not make commercial sense to produce Mulberry accessories bags and shoes in China and have shops there too?

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