Handbags all the rage as Mulberry profits soar on turnaround
Mulberry has recorded a surge in full-year profits as the luxury handbag brand continues to swing back into fashion.
The firm said pre-tax profit rose from £1.9 million to £6.2 million as the Somerset-based company’s turnaround under chief executive Thierry Andretta continues.
Sales rose 5% to £155.9 million as Mr Andretta hailed “significant progress” domestically and internationally.
He said: “Mulberry has made significant progress during the last financial year with solid growth achieved in revenues and profit. “Looking forward, we will invest further in developing exciting new product, whilst continuing to engage with our core UK and growing international customer base.”
Last year Mulberry’s profits were hammered after it attempted to move upmarket and compete with the likes of Gucci and Dior, but sales have bounced back strongly after it cut prices.
Mr Andretta added that new ranges by creative director Johnny Coca had been well-received. Like-for-like sales at Mulberry were up 8% over the year, with digital sales rising 19%. While its international arm also recorded growth, the firm said that it shut three stores in the US.