International pace increased, Product momentum, New business in South Korea announced today.
Mulberry Group plc (“the Group” or “Mulberry”), the British luxury brand, announces results for the year ended 31 March 2018.
FINANCIAL HIGHLIGHTS
- Profit before tax from existing business* up 36% to £11.3 million (2017: £8.3 million) before start up costs of £2.0 million (2017: £0.8 million) and net operating expense of £2.4 million relating to new Asia subsidiaries
- Reported profit before tax of £6.9 million (£2017: £7.5 million)
- Gross margin increased 185 basis points to 63.5%
- Revenue up 1% to £169.7 million (2017: £168.1 million). Retail sales up 3%, with UK broadly flat and International up 20%. Digital up 14% rising to 17% of Group revenue (2017: 15%)
- Cash of £25.1 million at the end of the year (2017: £21.1 million)
OPERATING HIGHLIGHTS
- International pace increased with new entities established in China, Hong Kong, Taiwan and Japan
- Store network in Asia enhanced with five new stores and two relocations
- Extension of omni-channel services across the network and launch of partnership with Toplife in China
- New products continue to gain momentum with a new bestseller, Amberley, established during the year
CURRENT TRADING AND OUTLOOK
- New majority owned business arrangement to develop the Korean market agreed with SHK
- Retail like-for-like sales down 7% for the 10 weeks to 2 June reflecting International up 1% and UK down 9%, due to lower footfall and fewer tourists, as more widely reported
THIERRY ANDRETTA, CHIEF EXECUTIVE OFFICER, COMMENTED: “We have made significant progress during the year on our international strategy, creating new Mulberry subsidiaries in China, Hong Kong, Taiwan and Japan. We are also pleased to announce today the formation of a new majority owned venture to develop the business in South Korea. Our international business is growing and following the completion of this set up phase in Asia, we will focus on omni-channel, digital partnerships and marketing investment in the region.
Following another period of cash generation, our balance sheet is strong. Although the UK market remains challenging, we will continue to invest in our strategy to develop Mulberry into a global luxury brand to deliver increased shareholder value.”
*existing business is defined as the UK, Europe, North America and Wholesale and excludes new entities in Asia.
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