Luxury Fashion Brand Sees Strong Recovery Amidst Uncertain Economic Climate

  • Mulberry’s profits before tax rise to £21.3m
  • Revenues increase by 35% to £152.4m
  • UK retail sales up 36% to £89.8m
  • China retail sales up 59%, South Korea up 11%
  • International retail sales up 20% to £40.4m
  • Digital sales down 16% but still higher than pre-Covid levels
  • Group revenues for the first 12 weeks of new financial year are 5% ahead of last year
  • Wholesale business up 29%
  • Omni-channel revenues down 1% due to Covid-19 restrictions in China
  • CEO Thierry Andretta praises team’s commitment and strategy for future growth

British luxury fashion brand Mulberry has reported profits before tax of £21.3m for the 53-week period ended April 2022, up from £4.6m in the previous year, as its revenues reflect a strong recovery post Covid-19. Group revenue increased by 32% during the period to £152.4m, with UK retail sales up 36% to £89.8m (2021: £66.2m). Mulberry also revealed that China retail sales increased by 59% and South Korea retail sales rose by 11%, contributing to a 28% increase in Asia Pacific retail sales, reflecting its ongoing development in the region. Overall international retail sales increased by 20% to £40.4m (2021: £33.8m). Digital sales were down 16% but still higher than pre-Covid levels at £47.5m, as customers returned to stores following reopenings. Looking ahead, Mulberry confirmed group revenues for the first 12 weeks of the new financial year are 5% ahead of last year, supported by its wholesale business up 29%. However, omni-channel revenues were down 1% due to Covid-19 restrictions in mainland China, including the closure of the majority of stores and its Shanghai distribution centre. CEO Thierry Andretta praised his team’s commitment and strategy for future profitable, cash-generative growth.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Mulberry’s financial performance, including profits, revenue growth, and sales figures in different regions. It also includes a quote from the CEO discussing the company’s sustainability efforts and future strategy.
Noise Level: 3
Noise Justification: The article provides relevant information about Mulberry’s financial performance and its growth in various regions, as well as the CEO’s comments on sustainability efforts and future strategy. It also includes specific revenue figures and comparisons to previous years. However, it does not delve into any in-depth analysis or explore potential challenges or risks that may affect the company’s growth.
Financial Relevance: Yes
Financial Markets Impacted: Mulberry’s stock price and luxury goods sector
Financial Rating Justification: The article discusses Mulberry’s financial performance, including profits, revenue growth, and sales in various regions. This information is relevant to investors and can impact the company’s stock price and the luxury goods sector as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

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