Mulberry profits down as retailer concludes "year of consolidation"

Mulberry has announced its results for the year ended March 2013.

Total revenues were down £3.4m from 2012 to £165.1m, although retail revenues were up eight per cent to £107.2m. Wholesale revenues were down 16 per cent to £57.9m. Profit before tax was £26m (down from £36m), reflecting an investment in directly operated international stores and a contraction in gross margin.

Commenting, chief executive Bruno Guillon said,

After three years of rapid growth, we have had a year of consolidation during which we have laid the foundations for the transition of Mulberry from a UK success story into a global luxury brand...

Mulberry has a well-established business in the UK and a growing presence in Europe. With over 80 per cent of our sales derived from these markets where the economic climate remains difficult, Mulberry's challenge for the future is to accelerate our brand awareness in the USA and Asia.

The fashion retailer is still reeling from the departure of creative designer Emma Hill on Monday due to a disagreement with management. Hill is widely credited with turning Mulberry into a major player, with shares dropping eight per cent on the news she was leaving.