Mulberry profits soar to £6.2m as firm makes ‘significant’ progress

Mulberry reaps the benefits of returning to its lower-priced roots with a rise in full-year profits.
Mulberry reaps the benefits of returning to its lower-priced roots with a rise in full-year profits.
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Mulberry has recorded a surge in full-year profits as the luxury handbag brand continues to swing back into fashion.

The firm said pre-tax profit rose from £1.9m to £6.2m as the Somerset-based company’s turnaround under chief executive Thierry Andretta continues.

Sales rose five per cent to £155.9m as Mr Andretta hailed “significant progress” domestically and internationally.

He said: “Mulberry has made significant progress during the last financial year with solid growth achieved in revenues and profit.

“Looking forward, we will invest further in developing exciting new product, whilst continuing to engage with our core UK and growing international customer base.”

Mulberry has spent the past two years sprucing up its range and reconnecting with its lower-priced roots after a move to a more exclusive luxury position backfired, resulting in a 74 per cent fall in full-year profit for the year ended 2015.

Mr Andretta added that new ranges by creative director Johnny Coca had been well-received.

Like-for-like sales at Mulberry were up eight per cent over the year, with digital sales rising 19 per cent.

Mulberry, whose overseas business accounts for about 30 per cent of its total revenue, said its international retail sales, including digital, were up three per cent to £21.3m.

However, the firm said that it shut three stores in the US.

The company said total retail sales for the 11 weeks to June 11 were up four per cent on a like-for-like basis and that it expected the rollout of its new Autumn/ Winter collection to be completed by August.