Mulberry sales, profits back in half, with new stores planned – WWD

LONDON – Mulberry bounced back to pre-pandemic growth in the first half of the financial year and back into the dark, posting a profit of £7.3m, compared with a loss of £2m in the same period last year.

Revenue for the six months ended September 25 was up 34% to £65.7 million year-on-year and 3% higher than in 2019.

Retail sales from MulberryTheir own channels grew 30% during this period and momentum built in the second half of the year. Retail sales grew 35% in the eight weeks to November 20, driven by improved in-store sales, strong digital performance, and continued growth in Asia.

Mulberry shares on the London Stock Exchange rose 26% to 3.80 pounds in mid-morning trading.

The brand has consolidated and restructured, with a digital focus and is pursuing a sustainability agenda called Made to last, have seen it set environmental goals; strengthen sourcing and supply chain management; and jump into the circular economy with resale and recovery programs.

The company said Wednesday that “Favorite Bags,” a collection of used styles Released in early 2020 with an exhibit on Bond Street, now available across all sales channels.

Earlier this week, the company launched a version of the Amberley bag made of low-carbon leather, in partnership with Scottish tannery Muirhead.

Mulberry's Made to Last Campaign

Mulberry’s Made to Last campaign.
Courtesy of Mulberry

“I am proud of Mulberry’s performance during that time,” said the executive Thierry Andretta. “Our long-term strategy is specifically for innovative and sustainable products made in our carbon neutral Somerset factories, a market-leading omnichannel distribution model and expansion into Our Asia Pacific, has delivered strong financial performance.”

Andretta says that innovation and product sustainability are now “at the heart” of the company’s strategy. He said the “Low Carbon Collection” is part of the Made to Last manifesto, as well as the goal of achieving zero carbon emissions by 2035.

In a phone interview on Wednesday, Andretta said that Mulberry remains committed to keeping the prices of its sustainable collections in line with the prices of its traditional leather collections, even if they cost more. more money to produce.

He said that Mulberry wants to be “completely transparent” with customers and believes that sustainable shopping should not carry an additional financial burden.

Andretta added that Mulberry’s decision to focus on its manufacturing capabilities in the UK means the company is “well-positioned for the festive business period and beyond”.

Mulberry is majority owned by Singaporean billionaire Christina Ong, who holds a 56% stake.

The company’s transformation in the first half after a difficult 2020: the company waved goodbye to its designer Johnny Coke, who moved back to Paris to work for Louis Vuitton; laid off about 25 per cent of its staff in the first UK strike; and terminated its footwear and ready-to-wear license as they increasingly focused on accessories and sustainability.

During the first half of the 2021-22 financial year, Mulberry saw a double-digit increase in retail sales in its major markets. In the UK, they increased by 36%, while in China they increased by 38%, contributing to the 23% increase in Asia Pacific overall. In the US, retail sales increased 57%.

During this period, international retail sales generated 40% of the group’s revenue, while digital accounted for 29%.

On the sustainability front, Mulberry says the Lifetime Service Center at The Rookery production center in Somerset is restoring more than 10,000 bags a year.

The company added that about 86% of the collection now boasts leather and suede sourced from environmentally recognized tanneries, and that number is on track to grow to 100% by fall 2022. All other materials, non-tanned, completely sustainable.

Mulberry says it wants to be “the UK’s leading responsible luxury brand and a pioneer in sustainability”. The plan is to transform its business into a circular and renewable model that covers the entire supply chain “from field to closet” by 2030.

“We believe the opportunity is substantial, and we have taken a leadership position in the field, investing in products that are built to last, and providing our customers with exceptional solutions,” the company said. round-the-clock repair and redemption options through the Mulberry Exchange,” the company said.

Selling mulberry, profit increased again

Mulberry’s latest cover collection is made from low carbon intensity leather.
Courteous image

Pre-tax profit was £10.2m in the first half, compared with a loss of 2.4m in the same period last year and includes a profit of £5.7m following the liquidation of the Mulberry store lease in Paris.

In six months, it opened seven international doors and closed seven, including its Paris unit. Andretta says that Mulberry took the opportunity to close the Paris store at 275 Rue Saint Honoré when the entire building was acquired, and took advantage of the low number of tourists in Paris.

The company is currently looking for new store space in the French capital, and Andretta says it will open with a new concept. “Paris is a capital city, and of course we want to be there,” he said.

The company is moving forward in other markets. In Manhattan, it plans to leave its current location at 134 Spring Street and take over the old site Balmain space at 100 Wooster Street. Andretta said the store will open in April.

In China, digital sales account for 43% of the country’s total revenue. Mulberry launched the WeChat program, which it sees as a long-term proposition “with the aim of building brand awareness in the region, with content that is regularly updated and aligned with campaigns, products and services.” relevant customers.”

In a six-month period, the company opened four physical retail stores in China: at the Beijing World Financial Center; Beijing Shin Kong Place; and Wuhan Heartland 66. It also opened a pop-up in Chengdu International Finance Square. The Shanghai International Finance Center will open in November 2021.

Mulberry added that it is revamping its physical store network, with 113 points of sale, including retail and franchises. It has been launching a new concept that includes customer-facing technology; create more space; and support the brand’s omnichannel proposition. The company says the new concept stores have performed better than their brick-and-mortar stores. Mulberry sales, profits back in half, with new stores planned – WWD


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