Revenue up at Mulberry as it delivers on objectives
Mulberry saw an increase in revenue during its 2023 financial year, as it “continued to deliver on strategic objectives”.
These objectives include omnichannel distribution; international development; constant innovation; and sustainable lifecycle.
The luxury fashion brand saw its revenue increase by 4% to £159.1m in the year ending April 1, compared to £152.4m in 2022.
UK retail sales fell slightly to £87.7m, down from £88.5m the previous year. Mulberry said the first half of the year was particularly impacted by the broader economic environment, although trading improved in the second half.
In October 2022, Mulberry opened a new store at the Battersea Power Station, before making the decision to close its Bond Street store in February 2023. It cited a lack of VAT-free shopping for tourists as a reason for a “dramatic” drop in footfall and sales.
However, Mulberry’s sales in the Asia Pacific region (+3%) and the international market (+12%) increased over the course of the year.
The retailer’s digital sales were up 2% to £48.4m (FY22: £47.5m), which Mulberry said represented 30% of its total revenue (FY22: 31%). This continued to remain above pre-COVID-19 levels.
Despite an increase in revenue, Mulberry saw a fall in underlying profit before tax to £2.5m (FY22: £14.6m), which included £4m of software-as-a-service costs and additional investments.
The retailer has also secured an extension to its £15m revolving credit facility to September 2027.
Christopher Roberts, chair of Mulberry, said: “The group is in a strong position to continue with strategic growth plans, taking the opportunities to accelerate our direct-to-customer model, [and maintain] our full price strategy”.
“Whilst we see every opportunity for Mulberry to continue to succeed, we must remain mindful of the external climate and ongoing sector headwinds including high inflation”, he added.