Mulberry’s H1 2023 results showcase continued sales growth despite wider losses, fueled by strategic investments in future expansion. The global launch of two successful bag families, Lana and Pimlico, post the reporting period, positions Mulberry for a robust second half, crucial during the festive trading season.
In H1, group revenues surged by 7% (£69.7 million) or 8% at constant exchange rates. Despite economic challenges in the UK, retail sales rose by 6% to £36.2 million. Internationally, retail sales (39% of total revenues) soared by an impressive 34% (£23.5 million), with the US market witnessing a remarkable 38% growth (42% at constant rates) attributed to heightened brand awareness.
Asia Pacific retail sales, including the first full ownership period of Australian stores, rose by 13% (£13.5 million), or 18% at constant rates. Despite a 7% decline in underlying sales, Mulberry remains optimistic about its global positioning.
The gross margin, though slightly lower at 69%, didn’t hinder the company’s commitment to strategic investments. The underlying loss before tax widened to £12.3 million due to SaaS costs and operational expenses for new stores, crucial for future growth.
Mulberry’s collaborations with Paul Smith, Axel Arigato, and Stefan Cooke drove global brand awareness, complemented by product innovation with the launch of Islington and Retwist bag families. CEO Thierry Andretta reaffirms the company’s resilience amid economic challenges and ongoing international business transformation to a direct-to-consumer model.
Andretta concludes by addressing the tough macro-economic environment’s impact on consumer sentiment and advocates for reinstating UK VAT-free shopping for tourists, a potential catalyst for broader business growth.
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