Mulberry revenues up 4% in FY23 despite UK sales drop

The luxury handbag brand, Mulberry, has revealed that revenues increased 4% to £159.1m for the year ended 1 April, an increase from £152.4m recorded in 2022. While UK retail sales only reached £87.7m, after reaching £88.5m in the previous year, performance improved in the second half. The group attributed its poor performance in the first half to the broader economic environment. However, the group’s digital sales, which continue to be above pre-Covid levels, increased 2% from £47.5m to £48.4m, representing 30% of its total revenue. The group also maintained gross margins of 71.2% compared with 71.7% in 2022, with full price retail sales increasing by 6%. This represents 78% of total retail sales. In addition, the group’s underlying profit before tax only reached £2.5m, compared with £14.6m in the previous year, as the group’s costs and additional investments took a toll. During FY23, the group opened three stores in Sweden and five stores in Australia, previously owned by its franchise partners, who were acquired during the period. Thierry Andretta, CEO of Mulberry Group, said: “We have delivered a positive group performance this year thanks to our unique brand identity, beautiful innovative products and market-leading omni-channel proposition. “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.” He added: “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.”