Mulberry takes cautious view despite bagging 'stunning' sales
Friday 20 June 2008
Mulberry's chairman and chief executive, Godfrey Davis, remains cautious about the outlook for the luxury global fashion brand, despite it posting barnstorming sales for the past year that bucked the gloom in the fashion sector.
"If it was not for the current economic climate I would be very bullish about our prospects, but as it is I am cautious," Mr Davis said.
For the first 10 weeks since 31 March, Mulberry said its like-for-like wholesale order book and UK retail sales were up a stunning 17 per cent. This follows a 14 per cent uplift to £51.2m for its full-year.
Mr Davis attributed the most recent sales uplift to its hefty investment in marketing and product design and development. "The consumer is keen to buy our products and that is really the result of the long-term effort on product design and development," he said.
He added: "We offer fair value. Although you may say that £400 to £500 for a handbag is quite expensive, they are stylish and people have their Mulberry handbag for a number of years. Customers see them as an investment because the product has longevity." Its UK retail sales grew by 29 per cent for the year to March 31.
However, the luxury brand ramped up its marketing spend by £2.1m to £4.8m, which dragged down its full-year pre-tax profits. For the 12 months to March 31, Mulberry delivered a pre-tax profit of £5.2m, compared with £6.2m a year earlier. Its operating expenses soared by £6.2m to £25.8m over the year. The luxury brand has 71 stores, which comprise those owned by the company and those operated by franchisees; it also sells products in department stores, including Harrods, Harvey Nichols and Selfridges. Its company-owned stores account for about 55 per cent of its total sales.
This year, Mulberry will open another UK store in London's White City development. It will also unveil three Middle Eastern stores – in Dubai, Jeddah and Kuwait – before Christmas, as well as two more shop-in-shops in Korean department stores via its partner in that country.
Mulberry will launch a line of women's shoes in its Mulberry shops this autumn, which will be restricted to its own stores for the first two or three seasons.
- 1 Three of Pope Francis' relatives die in Argentina car crash, including two young great-nephews
- 2 Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
- 3 Reading Festival 2014: Tesco branch replaces salad with Jager and potatoes for vodka as campsite opens tomorrow
- 4 Here’s the damning letter Robin Williams wrote to his Mrs Doubtfire co-star's principal after they expelled her
- 5 Ferguson protests: 90-year-old Holocaust survivor Hedy Epstein ‘arrested’ by police during St Louis demonstrations
Syria conflict: President Assad finally turns on Isis as government steps up campaign against militant strongholds
Michael Brown shooting: Amnesty International sends team within US for first time as National Guard deployed
Iraq crisis: Islamic State's message to America - 'We will drown you all in blood'
Ferguson: In the heartlands of America, a descent into madness
Celebrity Big Brother 2014: Audley Harrison meets Kellie Maloney: 'Was Kellie really the best you could come up with?'
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Ukip MEP calls for reintroduction of death penalty on fiftieth anniversary of last deaths
Russell Brand calls for Israel boycott: Comedian urges big businesses that 'facilitate the oppression of people in Gaza' to pull funding
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
World peace? These are the only 11 countries in the world that are actually free from conflict
iJobs Money & Business
£30000 - £44000 per annum + Bonus+Benefits+Package: Harrington Starr: Web deve...
£40000 - £65000 per annum + benefits+bonus+package: Harrington Starr: Senior A...
£35000 - £45000 per annum + benefits+bonus+package: Harrington Starr: Web deve...
£30000 - £40000 per annum + benefits+bonus+package: Harrington Starr: ETL Deve...