Follow us

Menu
PARTNER WITH USFREE NEWSLETTER
VISIT TheIndustry.beauty

Improving environment in China drives Mulberry's FY23 trading "slightly ahead" of previous year

Tom Shearsmith
20 April 2023

British luxury brand Mulberry has confirmed that overall FY23 trading was in line with the board's expectations, with group revenue slightly ahead of last year and underlying profitability, as usual, weighted to the second half.

The group has seen an improvement in retail revenue over the second half compared to the first half of the year, driven by a good performance in the UK and an improving environment in China over recent months, underpinned by our direct-to-customer model.

Despite its reported success, Mulberry recently closed its Bond Street store, citing the axing of VAT-free shopping as a major factor in the decision. In December 2022, Mulberry CEO Thierry Andretta told the PA news agency that the Government’s move to end tax-free shopping had hammered trading in its high-end stores in the capital, particularly its Bond Street outlet.

During FY23, Mulberry continued to make progress against its strategic priorities, including:

  • Gross margin maintained due to our strategic focus on full price sales.
  • Further investment in the Asia Pacific region, including the launch of a duty-free store in Hainan, Greater China.
  • Assuming full ownership of Mulberry Australia following the acquisition of five stores previously run by the Group's Australian franchisee. This follows the launch of Mulberry Sweden and the acquisition of three stores previously operated by the group's Swedish franchisee.
  • Launched the Mulberry X Miffy Lunar Collection as part of the group's ongoing commitment to sustainable innovation through its 'Made to Last' ethos.
  • Transformation function established to support the delivery of our strategy, including projects and system investments that support its omni-channel growth in the longer term.

The group continued to invest in its global brand awareness and the development of its business model during FY23 and remains focused on investing for future growth. As a result, net cash balances as at 1 April 2023 are expected to be around £800,000, with further headroom available under its borrowing facilities.

The group intends to announce its audited FY23 results on 22 June 2023.

Thierry Andretta, Chief Executive Officer, commented: "This year we have continued to deliver on our strategic objectives while demonstrating resilience in the challenging macro-economic environment. We've invested in our omni-channel approach, improved our direct-to-customer-model and maintained gross margin.

"I would like to thank all my colleagues for their creativity and the fantastic service they provide to our customers."

Free NewsletterVISIT TheIndustry.beauty
cross