In the first half of fiscal 2024 (H1 FY24), British luxury brand Mulberry Group has reported a 7 per cent increase in revenue, reaching £69.7 million, up from £64.9 million in the previous year. This growth is more pronounced at constant exchange rates (CER), where the increase stands at 8 per cent.

In the UK, retail sales rose by 6 per cent to £36.2 million, up from £34.1 million. Internationally, the group experienced a significant surge in retail sales, with a 34 per cent increase (35 per cent CER) to £23.5 million, compared to £17.5 million in H1 FY23. This growth is partly attributed to Mulberry's strategy of bringing in-house ownership of overseas stores, including those in Sweden and Australia, the company said in its results for the twenty-six weeks ended September 30, 2023.

The US market showed a remarkable 38 per cent increase in revenue (42 per cent CER), driven by heightened brand awareness. In the Asia Pacific region, including the first full period of ownership of Australian stores, retail sales grew by 13 per cent (18 per cent CER) to £13.5 million. However, underlying retail sales in the region saw a decrease of 7 per cent (3 per cent CER), impacted by the challenging macro-economic climate in China and reduced footfall across the region.

Digital sales continued to be a strong component of Mulberry's revenue, representing 29 per cent of total Group revenue, up from 25 per cent in the previous period.

Despite the revenue growth, Mulberry Group reported a gross margin of 69 per cent, slightly below the 71 per cent of the prior period. The group also reported a loss before tax of £12.8 million, a significant increase from the £3.8 million loss before tax in H1 FY24.

“Against a challenging macro-economic backdrop, which is impacting the entire luxury landscape, we have continued to invest in our long-term future. 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 product will power future growth,” said Thierry Andretta, chief executive officer.

Fibre2Fashion News Desk (DP)

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