Mulberry reports first-year profits up 231%
UK luxury leathergoods brand Mulberry has seen first-year profits increase by 231%, success it puts down to its strategy of international expansion.
The firm saw profit before tax increase to £15.6 million, compared to £4.7 million for the same period last year. Revenue increased by 62% to £72.3 million, up from £44.7 million for the same period last year.
Retail sales are up 18% for the 10 weeks to December 3, 2011, with like-for-like sales up 14%.
The brand said global expansion had helped boost profits. During the first half of this year, it has opened five new stores in the Asia-Pacific region. The UK factory expansion in Somerset has also been completed, creating 60 jobs.
Chief executive Godfrey Davis said: “Our strategy to focus on international expansion continues to bear fruit. The outlook for the six months to March 31, 2012 is positive. However, the potential impact of the economic environment on consumers’ spending habits makes the future more challenging.”
Mulberry said it planned to open nine new stores in the second half of 2012. It has agreed a 10-year distribution deal in October to sell its products in Japanese department stores and open flagship shops in Tokyo and Osaka.
