Mulberry grows sales but losses widen
Mulberry saw its revenue increase by 7% to £69.7 million in its first half as it continues to invest in its long-term future.
In the six months to 30 September, UK retail sales rose by 6% to £36.2 million while international sales climbed by 34% to £23.5 million.
However, the luxury brand posted an underlying loss before tax of £12.3 million compared to a loss of £2.8 million at the same time last year. During the half year, profitability was impacted by additional investments and costs to support business growth and its decision to bring ownership of overseas stores in-house.
Mulberry also invested in new lines and extended ranges, as well as collaborations with Axel Arigato, Stefan Cooke and Paul Smith.
Since the period end, the brand has launched two new bag families, the Lana and the Pimlico, which have both performed well.
Mulberry chief executive Thierry Andretta said: “Against a challenging macro-economic backdrop, which is impacting the entire luxury landscape, we have continued to invest in our long-term future.
“Our strategy to transform our international businesses to a direct-to-consumer model has enabled us to control the entire customer experience in Sweden, Australia, New Zealand and Japan. Our investments in the period in our digital systems, stores and product will power future growth.
“Looking ahead, we are well placed to capitalise on the important festive trading period and expect the usual second half weighting to trading.”
