British sustainable luxury brand Mulberry has said it will continued to deliver on strategic objectives, despite macro-economic uncertainty, seeing profits fall by £12m.
The Somerset-headquartered group reported that for the 52 weeks to 1 April 2023, revenues was £159m, compared to £152m during the 53 weeks to 1 April 2022. The brand reported underlying pre-tax profits fells from £14.6m to £2.5m, while statutory pre-profits were down from £21.3m to £13.2m.
Mulberry noted that it received new investment and its results included additional operational costs of new stores in Sweden and Australia. The prior period also benefitted from £3.5m of Covid-19 related reliefs.
Mulberry said UK retail sales were at £87.7m and said that the first half of the year was impacted by the "broader economic environment", however it said performance improved in the second half.
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Thierry Andretta, chief executive of Mulberry, warned that UK sales are being impacted as wealthy shoppers shun London for Paris and Milan due to the tax hit.
The group announced in February that it was closing its Bond Street store due to a “dramatic” drop in customers and sales after the removal of VAT-free shopping.
International retail sales increased 12% to £46.5m . Digital sales were at £48.4m, up 2% and representing 30% of total revenue. This continues to be above pre Covid-19 levels.
Mr Andretta said: "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.
"We are well set for the year ahead with the right strategy in place to deliver on our growth plans. Finally, I want to thank colleagues for their continued dedication to Mulberry, bringing their creativity and commitment to our business."
Mulberry's chairman Christopher Roberts added: "Whilst we see every opportunity for Mulberry to continue to succeed, we must remain mindful of the external climate and ongoing sector headwinds including high inflation."
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