In its latest update, luxury brand Mulberry has announced positive trading news, revealing “robust” sales in the second half of the financial year. This continuation of the positive sales trend seen in the first half has led the company to expect its group revenue for the full 12 months to be “moderately ahead” of current expectations. Mulberry has also stated that its gross margins have remained strong.

This trading update holds particular significance for Mulberry as the brand has faced challenges in recent years, primarily due to the impact of the COVID-19 pandemic. However, the encouraging sales performance suggests that Mulberry is recovering well from the difficulties of the past year.

In addition to the strong sales figures, Mulberry has increased its marketing investment in the second half of the year to boost global brand awareness. Despite the additional spending, the company expects its profits to exceed expectations for the year. With a strong balance sheet and net cash balances predicted to surpass £20 million, Mulberry appears to be in a favorable position.

This positive update follows a period of significant activity for Mulberry. The brand has recently introduced its new Softie bag series and has collaborated with renowned designers Nicholas Daley and Richard Malone. Furthermore, Mulberry has been ramping up its UK production, with a higher percentage of its products now being manufactured in Britain.

Although specific figures for revenues and profits were not disclosed in the update, it is evident that Mulberry holds an optimistic outlook for its performance. The full-year results will be unveiled on June 29, offering a more detailed overview of the company’s financial performance.

Investors have reacted positively to the news, resulting in a rise in Mulberry’s shares in pre-market-opening trading. With shares sitting at approximately 300p, the company’s total capitalization now exceeds £180 million. This marks a significant increase from its value earlier in March and throughout the past year. However, it is worth noting that a decade ago, Mulberry’s shares were trading at a considerably higher price of 2,249p.

Overall, Mulberry’s trading update paints a favorable outlook for the luxury brand. With strong sales, maintained gross margins, increased marketing investment, and profit expectations, the company is positioning itself for ongoing success. As stakeholders and investors eagerly await further insights into Mulberry’s financial performance, all eyes will be on the anticipated full-year results.

Useful links:
Mulberry Official Website
Mulberry Iconic Bags