Mulberry’s last fiscal period carries even heavier losses. On the next one, added weight will be brought by the continued social distancing practices and the consequences of both the pandemic and Brexit. “Sales after the fiscal year (which closed on March 28th), were above our early forecasts – stated Thierry Andretta, CEO -. However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping,”.
The numbers
The British group closed the last fiscal year with sales down by 10.2%. Overall revenue was of 149.3 million UK pounds, with earnings before taxes of -14.2 million. Mulberry had 1 million in profits the previous fiscal period.
Social distancing
““Prior to the impact of the coronavirus pandemic we were performing well and on-track to record a pre-tax profit in the second half of the year”, said Mr. Andretta. Mulberry’s sales have decreased by 29% from March to September, compared to the same period of the previous year. Yet, the trend is improving: the numbers beat the brand’s estimates. Additionally, online sales grew by 69% during the period. According to Mr. Andretta, the positive performance pre-pandemic and the recent improvement have to do with “the progressing of our four pillar growth strategy: our omni-channel distribution, our international development in Asia, a drive for constant innovation, and sustainability.
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