The reopening of the Chinese economy after three years of Covid-related lockdowns combined with higher UK sales and an end to discounting to boost revenues at iconic Somerset-based fashion business Mulberry.
The firm, best known for its high-end designer bags, revealed sales were slightly ahead of last year in a trading update for its financial year ended 1 April.
The improvement was “driven by a good performance in the UK and an improving environment in China over recent months,” it said, adding that the performance had also been underpinned by its direct-to-customer model.
Mulberry’s manufacturing sites at Chilcompton, south of Bath, and in Bridgwater between them produce more than half of its output.
Both have been carbon neutral since 2019 and are leading the group’s efforts to become more sustainable.
During the period, the group launched its Mulberry X Miffy Lunar Collection, pictured, as part of its ongoing commitment to sustainable innovation through its ‘Made to Last’ ethos – sustainable products made with 100% environmentally accredited carbon neutral leather.
The trading update also shows that it maintained its gross margin due to its strategic focus on full price sales while it assumed full ownership of Mulberry Australia following the acquisition of five stores previously run by its Australian franchisee.
The move is in line with its ‘omni-channel’ approach to expand the direct-to-customer model and followed the launch of Mulberry Sweden and the acquisition of three stores previously operated by its Swedish franchisee
Meanwhile, it made further investments in the Asia-Pacific region, including the launch of a duty-free store in Hainan, China, to take advantage of the strong recovery in the Chinese market post-Covid.
Mulberry chief executive officer Thierry Andretta said: “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.”
Mulberry was founded in 1971 by designer Roger Saul, who made leather belts and chokers on the family kitchen table.
The firm, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, employs around 1,400 people across the global and has offices in London, Paris, New York, Hong Kong, Tokyo and Seoul.
