Mulberry Group PLC on Wednesday resumed payouts after sizeable annual profit growth, as customers returned to stores after the easing of Covid-19 restrictions.
The luxury fashion company said it has made a decent start to the new financial year, but it has seen a hit from rising virus cases in China.
Shares in the company were 7.8% higher at 318.00 pence each in London on Wednesday morning.
Somerset, England-based Mulberry’s revenue surged 32% to £152.4 million in the year ended April 2 from £115.0 million. Pretax profit quadrupled to £21.3 million from £4.6 million.
Mulberry’s profit was helped by the sharp revenue climb, though its bottom line also got a boost from a one-off £5.7 million gain stemming from the disposal of a Paris lease.
‘We have made great strides in our mission to be the leading responsible British lifestyle brand, and a pioneer in sustainability. Mulberry continues to delight customers with our beautiful products, made to last with the highest quality, lowest carbon materials in our UK factories,’ Chief Executive Thierry Andretta said.
‘The strength of our financial results reflects positive customer response to our product as well as the strategic decisions we have made over the past five years, and I want to take this opportunity to thank my colleagues for their commitment and contribution to the business.’
During the year, retail sales in the key China market jumped 59%. Digital sales were down 16% year-on-year as ‘customers switched back to stores following store re-openings’. Digital sales were 31% above pre-virus levels, however.
Mulberry declared a 3 pence per share final dividend. It is the firm’s first payout since suspending dividends in the wake of the Covid-19 pandemic.
The company said revenue in the first 12 weeks of the new financial year are 5% higher annually - driven by its wholesale business which has seen revenue jump 29%.
However, retail and digital sales combined are 1% lower year-on-year, hit by Covid-19 restrictions in mainland China. The majority of Mulberry stores, as well as a Shanghai distribution centre, have been closed.
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