British luxury leather goods manufacturer Mulberry credits ‘improvement’ in revenue to UK and China performance.
The Somerset based company has announced an “improvement” in retail revenue over the second half of the year, in a trading update for the year to 1 April 2023.
Mulberry is the largest manufacturer of luxury leather goods in the United Kingdom thanks to the expertise of its 600 craftsmen and craftswomen. The Somerset factories are the foundation on which the brand is built.
The high-end handbag maker has said it’s most recent financial results show trading is in line with expectations despite the tough economic conditions and in line with their board’s expectations.
The company reported revenue is in fact slightly ahead of last year and underlying group profitability, as usual, is weighted to the second half of the year. Mulberry shares rose 8.0% to 243.00 pence each in London on Thursday morning.
Chief executive Thierry Andretta said:
“This year we have continued to deliver on our strategic objectives while demonstrating resilience in the challenging macro-economic environment. We’ve invested in our omni-channel approach, improved our direct-to-customer-model and maintained gross margin.
“I would like to thank all my colleagues for their creativity and the fantastic service they provide to our customers.”
The firm also reports an improvement in retail revenue over the second half compared to the first half of the year, driven by a good performance in the UK and an improving environment in China over recent months, underpinned by their direct-to-customer model.
The company has made further investment in the Asia Pacific region, including the launch of a duty-free store in Hainan, Greater China.
It has assumed full ownership of Mulberry Australia following the acquisition of five stores previously run by the group’s Australian franchisee.
Born in 1971, the roots of Mulberry are in Somerset, England. Mulberry’s founder, Roger Saul, established the brand at his kitchen table, with £500 back from his mother. His sister designed their instantly-recognisable tree logo – both that, and the name “Mulberry” came from the trees he would pass each day on his way to school.
The first designs were buckled leather belts, with other collections following soon after, including the original bags and womenswear.
The company say: “Since 1971, Mulberry has been a leading British lifestyle brand, internationally acclaimed for the design and quality of products that are truly Made to Last. We are proud to be the largest manufacturer of luxury leather goods in the UK, supporting and training a community of craftspeople across two factories in Somerset, where over 50% of our bags are made. The most beloved silhouettes – the Bayswater, the Alexa, the Amberley, the Iris – have become contemporary classics and iconic examples of British design.”
The group intends to announce its audited FY23 results on June 22 2023.
