Mulberry rebounds to profit amid lower costs and online boost

Shares in the London-listed firm jumped on Wednesday morning after it posted a £4.6 million pre-tax profit.

Henry Saker-Clark
Wednesday 21 July 2021 05:26 EDT
A model holds a Mulberry handbag
A model holds a Mulberry handbag

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Handbag maker Mulberry has swung back to profit for the past year after reducing costs and growing online sales.

Shares in the London-listed firm jumped on Wednesday morning after it posted a £4.6 million pre-tax profit for the year to March 27, compared with a £47.9 million pre-tax loss in the previous year.

The group said it returned to profitability despite a slump in revenues after being forced to shut due to the pandemic.

It told shareholders that group revenues dropped by 23% to £115 million for the year.

However, this was more than offset by lower impairment costs and operating expenses for the year.

Mulberry added that group revenues for the current financial year to date are up 45% against the same period last year.

It said retail revenues are 30% higher on the back of a “strong recovery” in the UK and continued growth in Asia

Thierry Andretta chief executive officer of the company, said: “I have been immensely proud to lead Mulberry this year. 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.”

Shares in the company increased by 7% to 310.4p in early trading.

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