a BACK-to-basics policy seems to paying off for British handbag maker Mulberry after sales were given a lift in the opening weeks of its new financial year.
The group has spent the past year reconnecting with its roots in affordable luxury after a push even further upmarket backfired, triggering profit warnings and the departure of then chief executive Bruno Guillon.
Pre-tax profit for the year to 31 March tumbled 74 per cent to £4.5 million, while wholesale revenue was down 29 per cent on lower demand. It proposed an unchanged dividend of 5p.
Retail sales inched up 1 per cent to £109.9m, but recovered strongly in the second half – up 9 per cent – thanks to the push to sell more sub-£1,000 bags.
That positive sales trend has continued into its new financial year, with total sales up 17 per cent for the ten weeks to 6 June, and up by 15 per cent on a like-for-like basis.
Chief exceutive Thierry Andretta said: “I am pleased that the strategy we approved as a board last year is beginning to bear fruit.”