Mulberry first half sales rise 18.1% as turnaround gains pace
Mulberry has grown its first half sales by 18.1% as its Back to the Mulberry Spirit turnaround strategy gains pace.
The luxury handbag brand said the performance in the 26 weeks to 26 September was the result of strong customer demand across both seasonal and core collections, and the popularity of its new products such as the Raffia, Crochet, Stevie and Darley Camera Bag.
Subscribe to TRBWhile UK sales rose by 10% in the period, sales in the US climbed by 28% as the business benefited from increased customer demand, the launch of Bloomingdale’s online marketplace, and the expansion of the brand’s wholesale presence. Meanwhile, sales in Europe and Asia rose by 23% and 5% respectively.
Mulberry said it maintained a disciplined approach to trading in the period, which included resisting discounting and generating strong full price sales. Excluding markdown activity, promotional sales represented a 300 basis point lower proportion of sales than at the same time a year earlier.
The company said it has entered the second half with a focus on full-# price growth, rebuilding gross margin and restoring profitability. It is targeting annual revenue of more than £200 million and a 15% adjusted EBIT margin over the medium term.
Mulberry said its Christopher Kane runway show at London Fashion Week marked a significant moment for the brand, with the generation of increased traffic across stores, digital platforms and third-party partners.
Andrea Baldo, chief executive of Mulberry, said: “The strength of our performance reflects the work undertaken over the past year to refocus the group around product, brand and customer, while maintaining a disciplined approach to trading and cost management.
” The growth in full price sales is particularly encouraging, demonstrating that our collections are resonating with customers across our key markets.
There remains much more to achieve as part of our strategic plan, and we are operating in a challenging trading environment. However, we enter the second half with a strong product pipeline, increased brand desirability and a clear focus on delivering our strategy.”
