Mulberry announced progress in relation to profitability, compared to the latest estimates. During the update that took place on Wednesday, April 27th, the British brand stated that the fiscal year (which closed on March 27th), closed with small profits earnings before taxes. Not the same as the small loss that was forecasted previously. The result’s improvement arrived thanks to the lower use of discounts and promotions enacted by the brand, as well as by the strong sales registered in Asia and on digital channels.
Small profits
Mulberry claimed, last November, that revenue for the fiscal year 2021, was going to be smaller than that of the previous fiscal year. At the same time, losses were going to be smaller thanks to cost-cutting actions. The brand claims that the final results on profitability are better than the Fall forecasts. Asia and online sales helped more than expected. According to WWD, Mulberry’s last year focused on rationalizing business and focusing on accessories (handbags), leaving footwear and apparel behind.
Fiscal year
Mulberry achieved its profitability during the 20/21 fiscal year thanks to the cost-cutting actions it took. The British brand reduced operational expenses by 34%, saving on discretional costs, freezing salaries and hiring, slashing by 20% the managers’ salaries (every so often). Moreover, Mulberry cut personnel by 25%, same as the it did to the number of stores. The brand also renegotiated rental agreements for its stores and didn’t renew the prêt-à-porter footwear licenses it had.
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