Mulberry Y/E results: before covid, “we were performing well”
UK leathergoods brand Mulberry has released preliminary results for the 52 weeks that ended in March, which show group revenue down 10%. The company also announced it won’t be paying a full year dividend to “maintain a robust liquidity”.
While the group revenue was down from £166.3 million to £149.3 million, international retail sales increased 4% to £32.4 million. Among these, Asia Pacific retail sales were up 30%, driven by ongoing investment in the region, and down 14% in the rest of the world.
Notable milestones in sustainability for the year included the release of “The Portobello”, a fully sustainable leather bag, and Mulberry said it is now carbon neutral across all UK operations.
"Prior to the impact of the coronavirus pandemic we were performing well and on-track to record a pre-tax profit in the second half of the year,” said Thierry Andretta, CEO. This was due to the group’s omni-channel distribution, international development in Asia, “a drive for constant innovation” and sustainability. The Group has been able to withstand some of the pressures that we, and indeed the entire retail industry, have been faced with.
“However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping,” he said. “We cannot control external events, but we have a clear strategy and remain confident in the strength of the Mulberry brand.”
The Bayswater Bag is one of Mulberry's 'sustainable icons', which use leather from Gold Standard tanneries.
