Mulberry gets a handle on its finances as profits jump

 
Helen Cahill
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Mulberry is back on track after it was hit by currency movements (Source: Mulberry)

Mulberry is back on track following its sterling hit last year, today posting a profit boost of more than 20 per cent.

The figures

For the year ending 31 March, Mulberry's total revenue increased by eight per cent to £168.1m, up from £155.6m for the prior year.

On a like-for-like basis, retail sales were up five per cent.

Read more: Mulberry profits hit by weak sterling

Profit before tax jumped from £6.2m to to £7.5m, a rise of 21 per cent. This left the luxury bag makers with a cash stockpile of £21.1m.

At time of writing, Mulberry's share price was down 2.61 per cent at 1,119p.

Why it's interesting

Analysts have hailed a turnaround at Mulberry after it posted its figures. The handbag firm reported a £500,000 loss before tax in its first-half results in December due to currency movements.

Nick Bubb, independent retail analyst, said the firm was now on the "recovery path", but noted that Mulberry did not provide any comment on its profit outlook for the year ahead.

Barclays analyst Julian Easthope said the firm's "turnaround remains on track".

"Real progress has been made on product and factory efficiency, which led to a much higher gross margin than we had expected," he said. "The group is also making great progress in Asia."

What Mulberry said

Thierry Andretta, chief executive of Mulberry, said: "During the year we have made good progress. Our sales and profits are growing, enhancing our strong cash position.

"Looking ahead, we will continue to invest in advancing our international development and increasing Mulberry's relevance to our customers' rapidly evolving lifestyle."

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