21st Jul 2021 13:18
(Alliance News) - British luxury fashion brand Mulberry Group PLC on Wednesday reported a "robust digital performance" and a return to profit in the wake of COVID-19 restrictions.
The handbag maker reported a pretax profit for the financial year that ended March 27 of GBP4.6 million, swung from a loss of GBP47.9 million in financial 2020. Underlying pretax profit was GBP5.9 million, after a loss of GBP14.2 million by this measure the year before.
Revenue was down 23% to GBP115.0 million in the recent financial year from GBP149.3 million the year before, but Mulberry took an impairment charge of just GBP5.7 million in financial 2021, down from GBP24.9 million in financial 2020. Meanwhile, "other operating costs" were cut to GBP69.2 million from GBP101.6 million.
Revenue intake is faring better in the new year so far, up 45%. Retail revenue is 30% ahead due to a strong UK recovery and growth in Asia, with sales in China up 46%.
Based in Bath, Somerset, Mulberry said digital sales were up 55% to GBP56.4 million in the recent financial year, representing 49% of total revenue. In the same period for 2020, digital sales represented 24% of total revenue.
The digital spike was due to customers migrating to online shopping while high street retail was shut.
"In the last 12 months our teams have faced enormous challenges posed by the global health crisis and have responded with resilience, resolve and passion," said Chief Executive Thierry Andretta.
"We have been able to leverage our leading omni-channel position, achieving very strong growth in Asia, and have served the communities in which we operate."
International retail sales increased by 4.3% to GBP33.8 million in the year ended March from GBP32.4 million, specifically with sales up 81% in China and 36% in South Korea. Sales for the rest of the world were down by 27%.
Mulberry will pay no dividend for the year in an effort to focus on international investment, particularly in Asia where the brand has experienced a popularity surge. It started the new year with GBP11.8 million in net cash and deferred liabilities of GBP4.7 million.
Shares in Mulberry were up 7.0% at 310.40 pence in London on Wednesday.
By Josie O'Brien; [email protected]
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