Shares in Somerset-based upmarket fashion brand Mulberry have risen to their highest level for more than two years after its sales bounced back over recent months.
In a trading update, the group, best known for its luxury bags, said there had been strong growth in its important Asian markets while online sales had also benefited from lockdowns across the world.
The iconic British brand, which this year marks 50 years since Somerset-born founder designer Roger Saul cut his first leather belt, was already under pressure from changes in consumer trends before the pandemic hit.
The impact of Covid-19, particularly early last year in the Far East, hit sales hard, but in the trading update for the year ended March 27, it said it now expects to outperform expectations and report a small underlying annual profit before tax.
This was due to the combined effect of strong growth in its Asian markets, strong sales on its global digital platforms and improved margins due to lower mark-down sales, it said.
The upbeat outlook pushed its shares up to 350p when trading opened today – their highest price since December 2018.
The group operates nearly 50 stores in 25 countries and 55 outlets in the UK, including 19 concessions in John Lewis stores, and 14 in House of Fraser shops.
It still manufactures many of its products at its factory in Chilcompton, south of Bath, and also has a second production site in Bridgwater.
Last week it vowed to become a net zero business by 2035 with a promise to start by using the world’s lowest carbon leather for its next product launch.
