Strong digital performance & international sales boost Mulberry

Mulberry returns to profit in the year to 27 March 2021 following growth in international sales and its digital performance.
Despite growth, group revenue fell 23% to £115m in the year from £149.3m year on year.
// Mulberry sees international sales rise by 4% to £33.8 million
// Digital sales at the retailer were up 55% to £56.4m, compared with £36.3m the previous year

Mulberry has returned to profit in the year to March 27, thanks to a strong digital performance.

The retailer said it came after a year that saw its overall revenue hit hard by the impact of Covid-19 and the closure of a majority of its physical stores.

Group revenue was down 23 per cent to £115 million in the year to March 27, but digital sales climbed up 55 per cent to £56.4 million

READ MORE: Mulberry upbeat with “small” profit forecast after lockdowns

Digital sales represented 49 per cent of total revenue, as customers migrated to digital channels.

International retail sales increased four per cent to £33.8 million, with Asia Pacific growth of 36 per cent driven by ongoing development in the region.

The retailer reported an underlying profit before tax of £5.9 million after posting a loss before tax of £14.2 million in the previous year.

“I have been immensely proud to lead Mulberry this year,” Mulberry chief executive Thierry Andretta said.

“In the last 12 months our teams have faced enormous challenges posed by the global health crisis and have responded with resilience, resolve and passion.

“We have been able to leverage our leading omni-channel position, achieving very strong growth in Asia, and have served the communities in which we operate, including repurposing our factories to produce over 15,000 reusable PPE gowns for frontline NHS workers.

“We have delivered a robust financial performance and have made good strategic progress in our journey to build Mulberry as a leading sustainable global luxury brand.”

Group revenue is up 45 per cent year-to-date, with retail revenue up 30 per cent thanks to a robust rebound in the UK and continued development in Asia, with retail sales in China up 46 per cent.

Mulberry released its Made To Last Manifesto during the period, pledging to change the company to a regenerative and circular model by 2030, embracing the full supply chain from field to wardrobe.

Now, 80 per cent of the retailer’s collection uses leather sourced from environmentally accredited tanneries.

This is set to increase to 100 per cent by autumn/winter 2022.

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