Mulberry's H1 sales up but losses widen

Mulberry Group revenue increased by 7 or 8 percent CER in the first half period and 7 percent in the second quarter.

The company’s retail omni-channel sales grew 16 percent driven by the strategy to transition some wholesale partners to full ownership or concession agreements.

The group's underlying pre-tax loss widened to 12.3 million pounds and reported pre-tax loss increased to 12.8 million pounds.

Commenting on the first half trading results, Thierry Andretta, the company’s chief executive officer, said: "Our strategy to transform our international businesses to a direct-to-consumer model has enabled us to control the entire customer experience in Sweden, Australia, New Zealand and Japan. Our investments in the period in our digital systems, stores and products will power future growth.”

Review of Mulberry’s first half results

Mulberry said UK total retail sales increased by 6 percent with full price sales increasing by 4 percent to 27.9 million pounds. UK store sales remained in line with prior period, however UK digital sales were up 19 percent on the prior period, with average transaction value increasing by 9 percent and represented 35 percent of total UK retail sales.

Asia Pacific retail revenue increased 13 percent or 18 percent CER, which includes the first full six-month period from the Australia retail stores which were acquired in the second half of last year. Excluding Australia, the company added, Asia Pacific retail revenue would have been down 7 percent due to the challenging China macroeconomic climate and reduced footfall across all the markets.

Rest of world retail revenue, which includes Europe and the US, increased 79 percent or 73 percent CER with 1.7 million pounds relating to the business in Sweden which was acquired in September 2022. Revenue in the US also increased by 38 percent or 42 percent CER due to increased brand awareness in the market.

Franchise and wholesale sales decreased by 25 percent, with wholesale arrangements in Sweden and Australia converted to retail following the purchase of the business in the prior year.

The company believes that it is prepared for the second half of the financial year, which is weighted in trading given the important festive trading period and further emphasised by the move from wholesale to retail.

Mulberry appoints Leslie Serrero as independent non-executive director

On 7 September 2023, the group appointed Leslie Serrero as an additional independent non-executive director. The company said that Serrero will also sit on the audit committee of the board.

Serrero has extensive experience of luxury brand leadership. She has been international managing director of US luxury group Casa Komos Brands Group since October 2022, having previously held senior executive roles at Fendi France from 2019 to 2022, Christian Dior Couture from 2012 to 2019 and Lacoste from 2009 to 2012.

Prior to this, the company further said, Serrero was a project leader at Boston Consulting Group for six years, advising companies in the retail, consumer and fashion sectors on transformation and growth strategies.