Luxury brand Mulberry released its released preliminary results for the year ended March 28, with the figures containing only a tiny coronavirus impact. As per a Fashion Network report, the luxury leather goods specialist also included a current trading update and said that trading since the start of the current financial year (which included the full impact of the pandemic) is ahead of its early expectations.
The company is now operating in a new phase with creative chief Johnny Coca having left just after the financial year-end and the firm now focusing on its core leather goods as it exits ready-to-wear after the AW20 season. The company boosted its digital sales during lockdown by establishing an off-price website to replace lost sales from its outlet stores and this website has been successful. On an underlying basis, its revenue fell to £149.3 million from £166.3 million in the previous year. Gross profit declined to £91.1 million from £102.3 million. The company was loss-making with a reported loss of £47.9 million, although on an underlying basis this was reduced to a loss of £14.2 million.
International retail sales increased by 4 per cent to £32.4 million, representing 26 per cent of retail revenue, compared to 23 per cent in the previous year. Asia Pacific retail sales increased by 30 per cent, driven by ongoing investment in the region, although this was offset by a 14 per cent decrease in rest-of-world retail sales, which included some store closures.
During the year, direct-to-customer sales represented 91 per cent of group revenue and were £135.4 million, compared to £146 million a year ago. Digital sales as a proportion of group revenue were 24 per cent up from 22 per cent.
The company has been reshaping its store portfolio has introduced new store concept in 28 locations including eight partner shops. This new concept features design elements to represent its British heritage and enables it to better display and promote its collections, as well as having lots of tech and more space. Those new concept stores are outperforming more traditional outlets.
