Mulberry aims to double production capacity
14/06/2012
Over the 12-month period, total revenues increased by 38% to £168.5 million and profits before tax went up by 54% to £36 million.
International revenues grew by 61% to £65.2 million, accounting for 39% of group revenues and online sales grew by 58% to reach £14.5 million, accounting for 9% of group revenues.
Mulberry opened 14 new stores in the course of the year, in the Netherlands, the US, Korea, Singapore, Thailand and Taiwan, as well as in its home market, the UK. Another major development was that it appointed former Hermès and Louis Vuitton executive Bruno Guillon as its new chief executive in March, with previous incumbent, Godfrey Davis, moving to the role of non-executive chairman.
The company also completed an extension project to its in the UK, increasing production capacity by 30% and creating 60 new jobs. It has announced that it will build a second factory in Somerset in the south-west of England, doubling its UK production capacity and creating a further 300 jobs.
Mulberry said its women’s apparel and women’s footwear businesses were the fastest growing categories during the year, but confirmed that leathergoods and accessories remain its core business, with women’s and men’s bags accounting for 77% of group sales. It said it was particularly pleased by the way in which a new women’s bag, the Alexa, had joined the Bayswater, Daria and Lily families as a best-seller.
On releasing the figures, Bruno Guillon commented: “I have joined Mulberry at a very exciting time. The team has produced another set of strong results, continuing to build market share internationally, whilst generating positive cash flows that will allow us to invest for future growth. The opportunity for the Mulberry brand is significant, with the profits earned from its strong domestic position supporting the increasing pace of international expansion. The challenge for the next few years is to build upon the solid foundations that have been laid, seize the international opportunity in a way that maintains the careful positioning of the brand within the luxury market, whilst continuing to make the enduring quality of our products central to everything we do.”
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