LONDON— Mulberry Group plc has ended its year on a high note.
The British accessories firm, plagued for months by management woes and negative profit warnings, reported that profit before exceptional items is expected to be “slightly ahead” of market expectations for the year ended March 31, due to improving retail sales and cost control.
As reported in December, retail trading improved following the introduction of the spring collection, which boasts a broader price range than in the past.
Mulberry said revenue for the 12-month period would be in line with expectations at 148 million pounds, or $241.2 million. Figures have been calculated at average exchange rates for the 12 months to March 31.
The full-year growth in retail revenue of 1 percent has been more than offset by the previously announced decline in the wholesale business, Mulberry added.
Mulberry has been pursuing a strategy of culling wholesale clients and putting a larger focus on retail sales and international expansion.
The company added that, as a result of “careful cost control,” profit before exceptional items is slightly ahead of market expectations.
The reported results for the year will also include an exceptional, non-cash impairment charge of between 2.5 million pounds and 3 million pounds, or $4.1 million and $4.9 million, relating to five of its stores.
“The encouraging retail trends over the last five months reflect our reinvigorated product offer and focus upon our customers,” said Godfrey Davis, Mulberry’s chairman.
Over the past year, Davis quickly pulled together a strategy following the company’s ill-fated attempt to move upmarket too quickly. He broadened price points, and began to woo back the core customer.
Earlier this year, he also named Mulberry board member and industry veteran Thierry Andretta to the role of chief executive officer, and late last year confirmed that Johnny Coca, formerly head of accessories at Céline, would become creative director. Coca is to take up his role in July.