British brand Mulberry Group profits drop for H1

5 December 2013 (Last Updated December 5th, 2013 18:30)

British luxury brand Mulberry Group reported a lower profit for the first half, hit by higher costs, while revenue improved 2%.

During the nine weeks to 30 November, the firm’s total retail sales were up 3%, as against the same period last year.

Pre-tax profit fell to £7.23m, as against £10.01m, reflecting the cost of continued investment in international expansion and increased seasonality.

Revenue for nine-month period improved 2% to £78.09m from £76.5m in the previous year, as retail sales grew while there was a modest decline in wholesale sales.

Retail revenue climbed 6% to £49.5m and was up 4% on a like-for-like basis.

UK retail sales, excluding online, were up 5% to £36.6. Footfall was down during the period, but this was offset by stronger conversion rates and increased average transaction values.

International retail revenue increased 29% from last year, as North America improved and Europe saw continued growth.

Wholesale revenue fell 5% to £28.6m, amid more conservative ordering by European wholesale customers.

During the nine-month period, Mulberry opened nine new international stores, with two stores opened since 30 September. Further, the luxury group is on track to open 15 new stores during 2013/14.

Mulberry designs and manufactures luxury bags for women and men, accessories, clothing and footwear. The company sells its products through its own stores and concessions, and wholesale channels.

The company has over 107 owned and partner retail footprints, consisting of 56 company owned stores and 51 partner stores. The company operates across Europe, North America, and rest of the world.