Mulberry bags a big profit overseas

MULBERRY, the “affordable luxury” fashion brand whose bags have adorned the arms of Kate Middleton and Kate Moss, yesterday reported a trebling of pre-tax profits to £15.6m.

It also saw its half-year retail sales jump 47 per cent year-on-year, buoyed by soaring international demand for its designer handbags.

The company reached total revenues of £72.3m, up 62 per cent on last year. Its international revenue more than doubled to £29.4m, from £13.7m in 2010, helped by the opening of a flagship store in New York and five new partner stores in the Asia-Pacific area.

The Somerset-based leather accessories company, founded in 1971, has already seen an increase of 29 per cent in Spring/Summer orders, even though there are still months of the fashion season remaining.

Godfrey Davis, chief executive of Mulberry, said: “Our strategy to focus on international expansion continues to bear fruit.

“Against the backdrop of economic uncertainty, Mulberry continues to build market share internationally and we remain cautiously optimistic about the future prospects of the business.”

Mulberry intends to open nine new stores before the end of the financial year.

Shares jumped three per cent following the results, peaking at £15.48 before closing at £15.00.