Luxury leathergoods brand, Mulberry, has announced plans to expand its production in the UK following a successful financial quarter. The company revealed in its recent earnings report that 60% of its products are now UK-made, a significant increase from the pre-pandemic figure of 50%. This expansion has resulted in the creation of 50 new jobs and demonstrates Mulberry’s commitment to supporting local employment and the growth of the British economy.

The decision to increase UK production comes at a time when many companies are facing supply chain challenges due to Brexit and the ongoing pandemic. By bringing more of its production to Britain, Mulberry has been able to mitigate these issues and maintain an agile supply chain. In anticipation of disruption, the company took proactive measures such as ordering more raw materials than usual and increasing its stock levels, which has shielded Mulberry from the global supply crisis.

The news of increased sales and profitability, coupled with CEO Thierry Andretta’s assurance of being well-prepared for the crucial holiday shopping season, initially caused a surge in Mulberry’s share price by 24% on Wednesday morning. However, the excitement subsided slightly, resulting in a 5% drop in share price on Thursday morning. Nonetheless, the company currently holds a market valuation of £211 million, a fraction of what it was almost a decade ago when its share price was around £22.50. Currently, Mulberry’s shares are priced at £3.67.

Mulberry’s commitment to expanding its UK production capabilities reflects the brand’s resilience and adaptability in the face of challenging market conditions. By prioritizing domestic manufacturing, the company not only strengthens its supply chain but also supports local employment and contributes to the growth of the British economy. With its strategic approach and strong financial performance, Mulberry remains well-positioned for continued success in the luxury goods market.

Useful links:
1. Mulberry Official Website
2. BBC Article on Mulberry’s Expansion