The British brand quadruples its annual profits as spending on luxury goods continues to grow
Mulberry has quadrupled its annual profits as spending on luxury goods continues to defy the world’s economic struggles.
According to its yearly figures, the British heritage brand’s like-for-like sales jumped by a whopping 43 per cent and made a pre-tax profit of £23.3million – up from just £5.1million the year before.
The label has gone from strength to strength in recent years under the guidance of Creative Director, Emma Hill, who joined the company in 2007.
The ready-to-wear and accessories collections have become increasingly popular with the fashion press and public alike, but the brand’s masterstroke, however, was the reworking of a classic Mulberry satchel and naming it after TV presenter and style icon du jour Alexa Chung. The result? Mulberry has doubled the production of women’s handbags to meet customer demand with a reported 80% rise in sales by the end of last year.
Other factors contributing to the surge in profits include a growth in online sales (up 64 per cent), and nine new store openings around the world in cities based in newly rich global markets, such as China, Malaysia, Qatar and the United Arab Emirates.
And Mulberry isn’t stopping there, with more global stores planned to open.
Godfrey Davis, chairman and chief executive of Mulberry, said: ‘While we remain cautious about the global economic environment, we are focused on accelerating our international expansion.’