20th Apr 2023 15:37
(Alliance News) - Mulberry Group PLC joined more illustrious European peers in the luxury goods space in reporting promising trading, defying fears for the sector in the face of an economic slowdown.
Earlier in April, numbers from LVMH Moet Hennessey Louis Vuitton SE and Hermes International SCA beat expectations. Quarterly reports from the duo, whose sprawling portfolios include brands such as Christian Dior and Terre d'Hermes, suggested that the current period of economic strife across the globe may yet be a fashionable one.
The improved first-quarter outturns were led by a re-opening of the Chinese economy.
While Somerset-based Mulberry is not quite as large as LVMH, whose market cap topped USD500 billion earlier this month, it has similarly enjoyed a boost from Chinese shoppers.
Mulberry expects to report a yearly revenue rise, with the luxury goods company's sales boosted by an "improving environment in China".
Mulberry said trading for the financial year that ended April 1 was in line with expectations. Revenue is "slightly ahead" of the GBP152.4 million achieved in financial 2022. It noted that underlying profit, as expected, was weighted to the second half.
Mulberry, famed for its handbags, said it "maintained" its gross margin. It put this down to its focus on full price sales.
In the Asia Pacific region, it launched a duty-free store in Hainan, Greater China during the financial year. It also took on full ownership of Mulberry Australia after acquiring five stores.
"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," Chief Executive Officer Thierry Andretta said.
Mulberry plans to announce yearly results on June 22.
Shares in the company traded 8.0% higher at 243.00 pence each in London on Thursday afternoon, giving it a market capitalisation of GBP146.0 million.
By Eric Cunha, Alliance News news editor
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