Mulberry saw a 4% rise in revenue to £159.1m for the full year, but its pre-tax profits dropped by 38% to £13.2m. The decline in profit was attributed partly to expenses related to the closure of its Bond Street store earlier in the year.
The luxury handbag retailer reported an underlying profit before tax of £2.5m for the year ending in April, down from £14.6m the previous year, with sales decreasing from £88.5m to £87.7m.
Mulberry’s CEO, Thierry Andretta, mentioned that the loss of VAT-free shopping was impacting the company’s performance in the UK. However, sales in the Asia Pacific region increased by 3%, and international sales grew by 12%.
Despite facing higher costs, Mulberry made significant investments, particularly in expanding its presence in Sweden and Australia. The company emphasized that it is well positioned for the coming year with the right growth strategies in place.
The increase in expenses, up by 26% year-on-year, was mainly due to additional costs related to expansion initiatives in Sweden and Australia, coupled with a 9% rise in staff expenses to £44.2m.
Andretta highlighted that Mulberry’s positive performance was driven by the brand’s uniqueness, innovative products, and strong omni-channel approach.
There were reports earlier in the year that Mike Ashley, holding a 37% stake in Mulberry, was looking to join the board. Ashley was reportedly discontented with Mulberry’s sales performance and lack of transparency regarding its Asian business.
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