Sales jump at Mulberry as turnaround gathers pace

(Sharecast News) - Mulberry Group posted a spike in second-half sales on Monday, sending the luxury brand's stock higher, as its turnaround gathered pace. Updating on full-year trading, the Aim-listed firm - known for its leather handbags and purses - said sales grew by 13.6% in the six months to 28 March on a constant currency basis, following a 3.2% slide in the first half.

As a result, annual sales jumped 5.7%, with revenue growth across the business, including digital, in-store and franchise and wholesale. Mulberry attributed the improved performance to its ongoing turnaround strategy, which has seen it simplify the business, re-focus on full-price sales and re-engage with both existing and new customers.

"The strategy is gaining traction across all regions," it continued, "with like-for-like sales growth in every market in the second half. This has been achieved alongside a disciplined focus on full price sales and reduction in discounting, supporting an improved gross margin."

As at 0900 BST, the stock was trading up 45% at 105p.

Andrea Baldo, chief executive, said it had been a year of "decisive progress". He continued: "Despite a challenging economic and geopolitical environment, we have delivered growth across all channels and geographies, with clear momentum across the business.

"We are reasserting Mulberry's position as a distinctive British lifestyle brand.

"While we remain focused on the work ahead, we are building momentum at pace. We are confident in our strategy and in our ability to build a sustainable, profitable business for the long term."

Mulberry is majority owned by Singapore's wealthy Ong family. Its second-largest shareholder is Frasers Group, which has previously attempted to take over the company.

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