Mulberry FY profits, revenue rise as it recovers from pandemic

Luxury handbag maker Mulberry reported a jump in full-year profit and revenue on Wednesday, with a strong performance in the UK and China, as it hailed a "strong" recovery from the pandemic.

In the 53 weeks to 2 April, pre-tax profit rose to £21.3m from £4.6m in 2021, although this includes a one-off profit on disposal of a Paris lease of £5.7m. Consensus expectations has been for pre-tax profit of £11m.

Meanwhile, group revenue was 32% higher at £152.4m, which Mulberry said reflects a "strong recovery post Covid-19".

UK retail sales grew 36% during the year to £89.8m, while the international segment saw sales rise 20% to £40.4m. China retail sales were ahead 59% and South Korea saw retail sales grow 11%.

Digital sales declined 16% to £47.5m, but this was due to customers switching back to stores following re-openings. Compared with pre-Covid 2019 levels, digital sales were up 31%.

Chief executive officer Thierry Andretta said: "The strength of our financial results reflects positive customer response to our product as well as the strategic decisions we have made over the past five years, and I want to take this opportunity to thank my colleagues for their commitment and contribution to the business.

"Whilst the economic and geo-political outlook remains uncertain, we are an iconic international brand with a clear strategy for future profitable, cash-generative growth. We remain well placed to continue to deliver sustainable returns to the benefit of all our stakeholders."

Mulberry said group revenue for the first 12 weeks of the new financial year is ahead 5% on the previous year, with wholesale sales up 29%. Omni-channel - retail and digital - revenue is down 1%, however, mainly due to Covid restrictions in mainland China, including the closure of the majority of stores and the company’s Shanghai distribution centre.