Mulberry FY23 sales boosted by China’s recovery

British luxury brand Mulberry has outlined its trading performance for the financial year ended April 1, 2023, stating that its results were “in line” with the board’s expectations.

The group’s revenue came slightly ahead of the previous year, with much of its profitability weighted to the second half, according to a regulatory filing.

Additionally, Mulberry reported an improvement in its retail revenue over the second half of the year, which it said was primarily driven by good performance in the UK as well as an “improving environment in China over recent months”.

In fact, the company has continued on its investment path in the Asia Pacific region in general as part of its string of strategic priorities, seen particularly in the launch of a duty-free store in Hainan, Greater China.

It also assumed full ownership of its Mulberry Australia subsidiary after it acquired five stores previously operated by a franchisee in the country, reflecting its efforts to expand a direct-to-consumer model.

Gross margin maintained, borrowing facilities allow further headroom

Further launches that were credited with its positive performance were that of its Mulberry Sweden subsidiary and its Mulberry X Miffy collection, which it linked to efforts surrounding a ‘Made to Last’ ethos centred on producing “100 percent environmentally accredited carbon neutral leather”.

The company also added that its gross margin had been maintained due to strategic focus on full price sales, while it further established a transformation function in order to deliver on its strategy.

While Mulberry is intending to announce its audited FY23 results on June 22, 2023, it said that its net balances are expected to be 0.8 million pounds, with further headroom available under its borrowing facilities.

In the report, the company’s CEO, 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 omnichannel 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."