Mulberry sales cut a dash as shoppers smarten up
Mulberry’s sales rose as shoppers got smarter…but shares fell 8.7% after earnings fell
Handbag retailer Mulberry is reaping the benefits of consumers looking to redress to impress after casual wear boomed during the pandemic.
Yesterday’s results showed the fashion house’s annual sales rose 4 percent as the return to partying and the office boosted sales of high-end accessories.
Boss Thierry Andretta said: “People go out to eat and party and it’s a return of previous trends.”
Red Hot: Annual sales at Mulberry were up 4% as the return to partying and the office boosted sales of high-end accessories
Luxury shoppers have shrugged off their cost-of-living concerns, with sales rising at brands like Hermes, Mulberry and LVMH.
Mulberry beat expectations of 2 percent sales growth, according to Barclays.
‘Micro bags’, which include smaller versions of classic products such as Alexa and Bayswater bags, proved particularly popular with Asian consumers, selling for hundreds of pounds.
But the London-listed retailer posted a profit drop of almost 40 percent for the year to April 1, and shares fell 8.7 percent, or 22 pence, to 230 pence.
The drop in profit was attributed to investment in Sweden and Australia and £14.8 million in costs after it closed its shop in the heart of London’s Bond Street.
Andretta backed the decision to close shop, saying it ‘doesn’t make sense’ to be on Bond Street until a VAT-free shopping program is reinstated