Mulberry says demand for luxury products back to pre-pandemic levels

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Mulberry says demand for luxury products back to pre-pandemic levels

Mulberry said demand for luxury products is back to pre-pandemic levels, with sales in the UK and Asia powering a surge in revenue as it prepares to benefit from the holiday shopping season.

The leather goods retailer, which cut 25 per cent of its staff last year because of weak demand, said in October and November sales improved, but any restrictions on the festive period could hurt its upbeat outlook.

The group's revenue increased to 65.7 million, up 34 per cent, helping Mulberry to make a profit before tax of 10.2 million, compared to a 2.4 million loss last year.

The stock has risen 62.3 per cent since January, and gained 68 p or 22.5 per cent to close at 370 p.

The turnaround has resulted in a turnaround to sticking to its long-term strategy of developing its shop and online services, according to Chief Executive Thierry Andretta, who said the company's goal is to continue to lead the luxury industry.

After a good period of time online, you want to enjoy returning to life and enjoy a good customer experience. Customers want to compare or ask questions about a luxury product, because the sensory experience is completely different.

Andretta said that Mulberry has resisted slashing prices and the margin is 69 per cent.

Mulberry, founded in Somerset in 1971, has 40 UK stores and a strong presence in South Korea, Japan and China. It employs about 1,200 people.

The company said it will spend more cash reserves on marketing over the next six months to build brand awareness around the world. According to Andretta, China is a target for the most potential front of house growth.

The company said it has been able to navigate supply chain issues because of the British factories and careful planning.

Retail revenue rose 35 per cent compared to last year's eight weeks to November 20.

The UK's retail sales rose by 36 per cent to 38 million, which is 10 million more than last year. International retail sales made up 40 per cent of the group's revenue. Digital sales were 19.1 million, a 19 per cent decline on last year when shops were closed, but this was made up for by the 87 per cent growth in stores, which produced 36.5 million of revenue.