Mulberry digital sales decline as revenues rise

Mulberry has released its results for the 53 weeks ending 2 April 2022, revealing a 32% increase in revenue to £152 million.

For the full year, Mulberry shared the following results:

• Gross margin of 71.7%, compared to 63.6% in 2021.
• Profit before tax was £21.3 million.
• UK retail sales increased 36% to £89.8 million, compared to £66.2 million in 2021.
• Digital sales decreased 16% to £47.5 million.
• Digital sales represented 31% of total revenue, compared to 49% in 2021.

Mulberry attributes its decrease in digital sales to stores reopening and customers returning to physical retail.

Revenue for the first 12 weeks of the new financial year is 5% ahead of last year, supported by the group's wholesale business up 29%. However, retail and digital revenue dropped 1%, largely as a result of COVID-19 restrictions in mainland China, including the closure of the majority of stores and Shanghai distribution centre.

Thierry Andretta, CEO of Mulberry, said: "The strength of our financial results reflects positive customer response to our product as well as the strategic decisions we have made over the past five years, and I want to take this opportunity to thank my colleagues for their commitment and contribution to the business. Whilst the economic and geo-political outlook remains uncertain, we are an iconic international brand with a clear strategy for future profitable, cash-generative growth. We remain well placed to continue to deliver sustainable returns to the benefit of all our stakeholders."