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Mulberry has said its turnaround strategy is gaining pace after its sales rose by 13.6% on a constant currency basis in the second half of the year, a reversal from the 3.2% decline seen in the first six months.
The luxury leather goods retailer said its recovery reflected reinforced full-price trading, sold-out launches and enthusiastic sector reception to the appointment of Christopher Kane as the brand’s as ready-to-wear creative director.
By the end of the year ended 28 March, the company saw total constant currency sales climb 5.7%, with all sales channels returning to growth by year-end.
Overall omnichannel retail revenues increased by 2.2%, as a softer first half was negated by a robust rebound in the latter six months.
Digital sales were up 1.1%, while store revenues grew 2.9%.
The retailer’s franchise and wholesale category continued to lead the pack, with full-year sales up 33.3% following robust growth in both halves.
The group additionally attributed its comeback to its “Back to Mulberry Spirit” strategy, which targets simplifying the business, reviving the brand and enhancing customer relationships.
The business added that the strategy was gathering momentum across all regions, bolstered by firmer discounting control and greater focus on full-price sales, promoting better gross margin year-round.
In the second half, like-for-like retail and digital sales grew by 13.7%, 20.1% in the US, 37.8% in Europe and 20.8% in Asia Pacific.
Mulberry said it had aimed to both re-ignite its current clientele and draw new customers across retail and digital, supported by targeted investment in product, positioning and availability.
The brand cited a healthy early appetite for its updated offering, with its Bayswater Limited Edition selling out within minutes of its February debut.
Mulberry also named the Boston bag as a symbol of demand for its refreshed lines.
Andrea Baldo, Mulberry CEO, said: “This has been a year of decisive progress. Despite a challenging economic and geopolitical environment, we have delivered growth across all channels and geographies, with clear momentum right across the business. This performance reflects the disciplined execution of our ‘Back to the Mulberry Spirit’ strategy, and demonstrates that our turnaround is firmly underway.
“We are simplifying the business, restoring full price discipline, strengthening our connection with customers, and reasserting Mulberry’s position as a distinctive British lifestyle brand. The early results are clear: improved sales quality, stronger margins and growing engagement from both existing and new customers.”
He added: “At the same time, we are reigniting creativity and since announcing the relaunch of Ready-to-Wear under Christopher Kane leadership, we have seen a remarkable engagement from the industry as a whole, including leading partners ranging from Selfridges in the UK and The Webster in the US to a growing numbers of other prestigious doors.”
