Festive sales spark at Mulberry, shares jump

(Sharecast News) - Shares in Mulberry Group shone on Wednesday, after the luxury handbag maker posted a spike in third-quarter sales, including strong demand for full-price products.

The Aim-listed firm, which is seeking to reinvent itself around following a difficult period, said total sales rose 5.3% in the 13 weeks to 27 December, or by 11% on a like-for-like basis.

In its core UK market, retail and digital sales strengthened 6.5% on an underlying basis. Mulberry said that in line with its new strategy, a larger proportion of the UK sales mix was full-price during the period, despite "challenging" conditions in the broader retail market.

Underlying sales were also stronger overseas, including a 12.6% uplift in the US and 27.2% surge in mainland Europe.

The leather goods specialist said: "The strength of this performance reflects the group's ongoing delivery of its new strategy - focused on simplifying the business, refreshing the brand and more fully leveraging customer insights."

As at 0900 GMT, the stock was trading 5% higher at 110.25p.

Chief executive Andrea Baldo, who was brought in to reverse weak sales and mounting losses, said: "The growth in sales across our markets show that our products are resonating with customers around the world, as we continue our focus on re-invigorating Mulberry and injecting creativity back into an iconic brand.

"The response to our Christmas campaign has been in line with expectation."

Mulberry is majority controlled by its largest investor, Singapore's wealthy Ong family.