LONDON – Mulberry Group’s renewed focus on core leather goods and lower average prices helped to boost profits 85.8 percent to 5 million pounds, or $6.6 million, in the year ended March 31.
Revenue in the 12 months climbed 7.8 percent to 168.1 million pounds, or $220.2 million, in a busy year that saw the brand expand and consolidate its business in Asia, launch new products including the Zipped Bayswater and boost its omnichannel offer.
Thierry Andretta, chief executive officer of Mulberry, said the company made “good progress” in the year and that it would continue to invest in international development. Andretta said he also wanted to “increase Mulberry’s relevance” to its customers’ rapidly evolving lifestyles.
Current trading is off to a modest start. In the 10 weeks to June 3, retail like-for-like sales, including digital, were up 1 percent, the company said. In the U.K., like-for-like retail sales advanced 2 percent, and the company said the brand continued to benefit from an increase in tourism to the U.K. and the weak pound, although domestic demand has been “softer.”
Mulberry said that international like-for-like sales in the first weeks of the current fiscal year showed a weakening in “non-stragetic” locations, with management continuing to focus on the “optimization” of the store network.
Looking ahead, the company said the local Mulberry web sites in China and Korea will be fully translated and operational by the summer, while a new store concept is being developed that will result in increased capital expenditure. The new store format will roll out next year.
The company has no debt and said it ended the year with a cash balance of 21.1 million pounds, or $26.8 million.
Dollar figures have been converted at average exchange for the period to which they refer.