British luxury label Mulberry has reported robust annual results as customers returned to physical stores following the end of lockdowns.
In the year to April 2, the bag specialist posted revenue of 152.4 million pounds, up 32 percent compared to the 115 million pounds it made the previous year.
Breaking it down by geography, retail sales in its home market of the UK were up 36 percent to 89.8 million pounds, while international retail sales were up 20 percent to 40.4 million pounds.
Asia Pacific retail sales were up 28 percent, thanks to a 59 percent increase in China and 11 percent increase in South Korea, which the company said reflected “ongoing development” in the region.
The increase in revenue came as shoppers returned to stores following the end of lockdown restrictions. As a result, digital sales were down 16 percent to 47.5 million pounds compared to a year earlier, but were still 31 percent higher than pre-Covid levels.
Mulberry made a profit before tax of 21.3 million pounds - up from 4.6 million pounds a year earlier - which included a one-off profit on disposal of the lease of its Paris store of 5.7 million pounds.
Gross margin for the year was 71.7 percent compared to 63.6 percent a year earlier.
Covid impacts recent trading
Looking at more recent trading, Mulberry’s revenue for the first 12 weeks of the new financial year was 5 percent ahead of last year thanks to a 29 percent growth in its wholesale business.
However, its omni-channel revenue - which includes its retail and digital revenue - was down 1 percent, which it said reflected Covid-19 restrictions in China.
Chief executive Thierry Andretta 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”.
He continued: “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.”