News Flash

British fashion firm Mulberry's revenue climbs 4% in FY23

30 Jun '23

2 min read

Pic: ArDanMe / Shutterstock.com

Insights

British luxury brand Mulberry reported a 4 per cent revenue growth to £159.1 million in FY23.
UK retail sales dipped slightly, while Asia Pacific and international sales grew.
Digital sales rose 2 per cent, and gross margins remained steady.
However, underlying profit before tax fell sharply. Profit before tax also decreased to £13.2 million.

British luxury brand Mulberry Group has reported a growth of 4 per cent in preliminary group revenue for fiscal 2023 (FY23), hitting £159.1 million, up from £152.4 million in the previous year. This improvement came despite the volatile economic environment and has been attributed to the company's focus on strategic objectives.

UK retail sales experienced a slight dip to £87.7 million in FY23, a decrease from £88.5 million in FY22. The group attributed this decline to the broader economic environment, which significantly impacted the first half of the year. However, the company saw an improved performance in the second half.

In contrast, Asia Pacific retail sales showed resilience despite COVID-19 lockdowns in key markets like China and South Korea. Sales in the region increased by 3 per cent to £28.9 million, up from £28 million in FY22. International retail sales also enjoyed a significant boost, increasing by 12 per cent to reach £46.5 million, compared to £41.7 million in FY22, the company said in a media release.

Digital sales saw a modest rise, increasing by 2 per cent to £48.4 million, and constituted 30 per cent of the total revenue, a slight drop from 31 per cent in FY22. Despite this minor decrease, the figure remains above pre-COVID-19 levels.

Gross margins maintained steady at 71.2 per cent, a slight decrease from 71.7 per cent in 2022. Full price retail sales saw a 6 per cent increase and represented 78 per cent of total retail sales, up from 76 per cent in the previous year.

However, the company's underlying profit before tax for FY23 saw a significant decline to £2.5 million, a stark difference compared to £14.6 million in FY22. The reported profit before tax also decreased to £13.2 million in FY23, down from £21.3 million in FY22.

“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,” said Thierry Andretta, chief executive officer.

Fibre2Fashion News Desk (DP)

More Fashion News - United Kingdom...