Profits at luxury handbag firm slump by £12m
Profits at luxury handbag maker Mulberry fell by more than £12m over the last 12 months.
The Somerset firm said underlying profit before tax was £2.5m compared to £14.6m the previous year.
Reported profit before tax was £13.2m compared to £21.3m last year.
The company blamed the fall in profits on software costs and additional investment across the group in its preliminary results.
Group revenue was up four per cent to £159.1m and the firm said it continues to deliver on strategic objectives despite the ongoing economic uncertainty.
UK retail sales were £87.7m and he first half of the year in particular was impacted by the broader economic environment, however performance improved in the second half.
International retail sales increased 12 per cent to £46.5m . Digital sales were £48.4m up two per cent and representing 30 per cent of total revenue. This continues to be above pre COVID-19 levels.
Chief executive Thierry Andretta said: “We have delivered a positive group performance this year thanks to our unique brand identity, beautiful innovative products and market-leading omni-channel proposition.
“Our Made to Last Manifesto also continues to set us apart and ensures that sustainability remains central to our strategy, with our ambition to transform to a regenerative and circular model across our supply chain by 2030 firmly on track.
“We made further progress during the period, reaching our target of sourcing 100 per cent of our leather from tanneries with environmental accreditations including Leather Working Group and Sustainable Leather Foundation while all other materials and packaging used remain fully sustainable and recyclable. We continued to expand our circularity programme offering our pre-loved bags in the UK and Europe and restoring over 10,000 bags every year.
“We have made significant investments in the company this year, as well as expanding our direct-to-customer model with the recent acquisitions of businesses in Sweden and Australia. I am also delighted today to announce we now have full ownership of Mulberry Japan Co. Limited.
“These investments were supported by our transformation function, designed to support the delivery of our strategy, with a particular focus on projects and systems that will underpin our growth in the longer term.
“We are well set for the year ahead with the right strategy in place to deliver on our growth plans. Finally, I want to thank colleagues for their continued dedication to Mulberry, bringing their creativity and commitment to our business.”
