Mulberry’s focus on bags drives return to profitability
11/12/2015
Revenue was up 5% to £67.8 million, with retail sales up 10%.
However, wholesale sales declined by 11% to £17.4 million, reflecting conservative ordering by Asian partners as well efforts to increase control over distribution to independent retailers. “We expect the sales trend to continue for the short term as our partners await the arrival of the new collections from Johnny Coca and we continue to optimise our network,” said the company.
“During the last 18 months, our priority has been to focus on regaining momentum within our single largest category, women's handbags. This strategy is proving successful and looking forward, we will apply the same approach across all product categories to reinforce the brand's British lifestyle image.”
It also reported efficiency gains in UK factories, which make 50% of bags, and reported a move into footwear. “Women's ready-to-wear and shoes are a very small proportion of our sales but have potential for growth in the future and are an important factor in building the lifestyle image that will help develop Mulberry internationally. After careful analysis, we have concluded that licensing the manufacture and distribution of these categories will enable us to deliver best in class quality whilst achieving our target price range. We have signed a letter of intent with high quality third party partners who have been selected based upon their proven track record in the luxury industry.
CEO Thierry Andretta (pictured) said: "Our strategy is beginning to deliver tangible results in line with our expectations. We look forward to Johnny Coca's first Mulberry collection which will emphasise our Britishness and our heritage in leather, whilst delivering great quality within our targeted price range.”
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