Somerset based Mulberry says revenues are holding steady despite tough conditions

Luxury handbag maker Mulberry has said trading is in line with expectations despite the tough economic conditions.

The Somerset firm said in a trading update that trading for the full year was in line with board’s expectations.

Revenue is slightly ahead of last year and underlying group profitability, as usual, is weighted to the second half of the year.

The firm has seen an improvement in retail revenue over the second half compared to the first half of the year, driven by a good performance in the UK and an improving environment in China over recent months, underpinned by our direct-to-customer model.

The company has made further investment in the Asia Pacific region, including the launch of a duty-free store in Hainan, Greater China.

It has assumed full ownership of Mulberry Australia following the acquisition of five stores previously run by the group’s Australian franchisee.

Chief executive Thierry Andretta said: “This year we have continued to deliver on our strategic objectives while demonstrating resilience in the challenging macro-economic environment. We’ve invested in our omni-channel approach, improved our direct-to-customer-model and maintained gross margin.

“I would like to thank all my colleagues for their creativity and the fantastic service they provide to our customers.”