Mulberry has posted an 18 per cent jump in first-half sales as its push to sell more handbags at full price gets its turnaround back on track.
The retailer reported an 18.1 per cent rise in sales for the 26 weeks to 26 September, with strong demand for its heritage handbags and new collections helping to lift performance across its key markets.
The results sent Mulberry’s shares climbing as much as 7.4 per cent in early trading on Monday, as investors welcomed signs of progress under chief executive Andrea Baldo’s turnaround strategy.
Sales in the UK increased 10 per cent, with like-for-like sales up nine per cent, while the US emerged as its strongest-performing market, delivering a 28 per cent rise in revenue.
European sales, excluding the UK, climbed 23 per cent, while Asia Pacific sales rose five per cent. Its franchise and wholesale business also recorded a 52 per cent jump.
It said demand for its iconic Bayswater and Lily handbags remained strong, alongside newer collections including Stevie, Raffia, Crochet and the Darley Camera Bag.
Mulberry has also been cutting back on promotional activity as part of Baldo’s ‘Back to the Mulberry Spirit’ strategy, which aims to restore the brand’s premium positioning and return the business to profitability.
Promotional sales, excluding markdown activity, accounted for three percentage points less of total sales than a year earlier, supporting gross margins.
Mulberry also credited its collaboration with designer Christopher Kane and return to London Fashion Week with attracting more shoppers to its stores and online channels.
Baldo said: “The growth in full-price sales is particularly encouraging, demonstrating that our collections are resonating with customers across our key markets.”
He added that the business still had more work to do against a challenging trading backdrop but was entering the second half with a stronger product pipeline.
Mulberry is sticking to its medium-term targets of annual revenue exceeding £200m and a 15 per cent adjusted operating profit margin.
It will publish its full first-half results on 19 November.
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