Mulberry swings to FY profit despite store closures

Luxury handbag maker Mulberry said on Wednesday that it swung to a profit in 2021 despite revenues being hit by Covid closures, as digital sales rose.

In the year to 27 March, the group swung to an underlying pre-tax profit of £5.9m from a loss of £14.2m a year earlier. Group revenue fell 23% to £115.0m, mainly due to the impact of Covid-19 and the closure of most of its stores during the period.

However, digital sales grew 55% to £56.4m and international retail sales were 4% higher at £33.8m.

Asia Pacific saw retail sales growth of 36%, driven by ongoing development in the region, with China sales up 81% and South Korea sales 36% higher. Rest of World retail sales fell 27%.

As far as current trading is concerned, Mulberry said group revenue in the period to date is 45% ahead of last year, with retail revenue up 30% thanks to a strong recovery in the UK, and continuing growth in Asia.

Chief executive Thierry Andretta said: "We have delivered a robust financial performance and have made good strategic progress in our journey to build Mulberry as a leading sustainable global luxury brand."

At 1010 BST, the shares were up 7% at 310.40p.