The Covid-19 unlocking and booming sales in Asia have boosted luxury fashion retailer Mulberry, reveal new figures released today.
Income at the London-listed retailer climbed 34 per cent to over £65m, up from £48.9m in the same period last year.
Profits jumped to £10.2m, largely driven by the sale of shop leases in France. UK sales rose 36 per cent as consumers splashed the cash on luxury items after spending months on end in lockdown.
The retailer’s shares were up 20 per cent on Wednesday afternoon.
Russ Mould, investment director at AJ Bell said if Mulberry could pursue “sustainable profits” with the help of a carbon-neutral Somerset factory, investors “may decide that the £200m-plus market capitalisation is too low.”
Mulberry is planning on capitalising on strong sales growth by ramping up “marketing expenditure… to continue building brand awareness worldwide,” the retailer said.
Thierry Andretta, chief executive of Mulberry, said: “The bold decisions we have taken with regards to focussing on our UK production capabilities, means that we are well placed for the festive trading period and beyond.”
Sales in China drove the strong performance in Asia, advancing 38 per cent. The region generated £11.8m for Mulberry.
Chinese consumers typically provide a large proportion of income for luxury fashion retailers such as Burberry.