- Mulberry reports earnings for the year ended April 2
- Demand remains strong despite inflation and supply chain headwinds
- Mulberry shares rally in the early part of the session
Luxury fashion brand Mulberry reported earnings for the year ended April 2nd on Wednesday, confirming that despite soaring inflation, high-end fashion demand remains strong…
Despite inflationary pressures and supply chain bottlenecks, demand in one retail segment appears undaunted — luxury apparel.
Companies such as Burberry, Canada Goose, and Ralph Lauren have posted better than expected earnings in recent months, and Mulberry has continued that trend.
The British fashion company’s revenue grew 32% to £152.4 million from £115 million in 2021, reflecting a “strong recovery post-Covid-19.”
Mulberry’s UK retail sales increased 36% to £89.8 million, while China retail sales rose 59% and South Korea retail sales grew 11%.
Digital sales came in at £47.5 million, falling 16% from £56.4 million in 2021, as customers switched back to stores following store re-openings. However, Mulberry’s digital sales increased from 24% in 2020, which Mulberry stated represents the ongoing strength in its online segment.
If you look at the consumer data further below, we can see how organic traffic to Mulberry’s website has declined since the start of the year.
Profit before tax, which included a one-off profit on disposal of the Paris lease of £5.7 million, was £21.3 million, while gross margin was 71.7%.
“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 stakeholder,” said Mulberry CEO Thierry Andretta.
In further positives for the company, it said group revenue for the first 12 weeks of the new financial year is 5% ahead of the previous year. However, it has been impacted by Covid lockdowns in China, with omnichannel (retail and digital) revenue down 1%. The restrictions affected most of Mulberry’s stores and its Shanghai distribution centre.
Mulberry shares gained more than 8% in early Wednesday trading.