Mulberry posts surge in full-year profit

Luxury brand Mulberry – known for its iconic handbags – posted a jump in full-year profit as total revenue and retail sales grew.

In the year to the end of March, pre-tax profit rose to £6.2m from £1.9m in 2015 on total revenue of £155.9m, up 5%. Meanwhile, retail sales were up 8% to £118.7m, with like-for-like sales also up 8%.

The company proposed a dividend of 5p per share, in line with the previous year.

As far as current trading is concerned, Mulberry said total retail sales for the 11 weeks to 11 June were up 9%, with LFL sales up 4%.

Chief executive Thierry Andretta said: "Mulberry has made significant progress during the last financial year with solid growth achieved in revenues and profit. The first collection introduced by our new creative director, Johnny Coca, has been well received by both the UK and international press and partners. Our UK manufacturing base, which produces c. 50% of our bags, has remained a core strength and point of distinction.

“We have built a strong foundation for future growth as a result of the investment made in product design and development as well as our omni-channel infrastructure. Looking forward, we will invest further in developing exciting new product, whilst continuing to engage with our core UK and growing international customer base."

UK retail sales increased 9% in the year to £97.4m, while international sales were up 3% at £21.3m.

Digital sales rose 19% to £21.4m, accounting for 14% of group sales versus 12% in 2015.