Mulberry counts on international markets to boost sales
15/06/2018
Retail sales were up 3% during this period, led by 20% growth in international sales. However, during the 10 weeks to June 2, the company said its retail like-for-like sales had fallen 7%, primarily due to “lower footfall and fewer tourists” in the UK.
It described its UK sales for the year to March 31 as “broadly flat”. The brand’s domestic market makes up around 70% of its total sales, but chief executive Thierry Andretta said it “remains challenging”.
The company’s profit before tax for the year was 36% higher at £11.3 million, excluding the start-up costs associated to Mulberry’s expansion into Asia. When factoring in these costs, pre-tax profit was down 8% to £6.9 million.
During the 12-month period, Mulberry has expanded its presence in China, Hong Kong, Taiwan and Japan through new stores and partnerships.
The brand has now announced it has agreed a joint venture with SHK Holdings to develop its business in South Korea. Mulberry will own 60% of the shares in this new company, to be known as Mulberry Korea. It will have its head office in Seoul and is expected to begin trading in autumn 2018.
Share this story:
