Mulberry sales cut a dash as shoppers smarten up… but shares fall 8.7% after profits slump
Handbag seller Mulberry is reaping the rewards of consumers wanting to dress to impress again after casualwear boomed during the pandemic.
Results yesterday showed annual sales at the fashion house rose 4 per cent as a return to parties and the office drove sales of high end accessories.
Boss Thierry Andretta said: ‘People are going out for dinner and to parties and it is a return of previous trends.’
Red hot: Annual sales at Mulberry rose 4% as a return to parties and the office drove sales of high end accessories
Luxury shoppers have been shrugging off cost of living concerns, with sales rising at brands such as Hermes, Mulberry and LVMH.
Mulberry beat expectations of 2 per cent sales growth, according to Barclays.
‘Micro bags’, including smaller versions of classic products such as Alexa and Bayswater bags, proved especially popular among Asian consumers, retailing for hundreds of pounds.
But the London-listed retailer posted a near-40 per cent slump in profits for the year to April 1, and shares fell 8.7 per cent, or 22p, to 230p.
The profit fall was blamed on investments in Sweden and Australia, and £14.8million in costs after it closed its store, in the heart of London’s Bond Street.
Andretta stood by the decision to close the shop saying that it ‘doesn’t make sense’ to be on Bond Street until a VAT-free shopping scheme is reinstated