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(Sharecast News) - Shares in Mulberry Group sparked on Wednesday, after the British luxury brand said an "encouraging" first half had left it well placed for the critical festive trading season.
The leather goods specialist, which is seeking to turn itself around after a difficult period, said trading in six months to 27 September had been in line with expectations.
Group revenues fell 4% to £53.9m. On a like-for-like basis, retail store sales rose 4% in Mulberry's key markets of UK, Europe and Asia, but fell 14% in Asia Pacific.
However, gross profits were stable at £37.3m, supported by a cost-cutting programme, the closure of stores in China - where the wider luxury sector has struggled in recent years - and a focus on full-price goods.
The operating loss also narrowed notably, from £4.9m to £13.1m.
As at 0930 GMT, the stock was up 5% at 100p.
Andrea Baldo, chief executive, said: "This has been an encouraging first half. We're still early in the turnaround, but the foundations we've put in place are working and we're starting to see that reflected in performance.
"We're strengthening our margin and improving our cash position through a greater focus on full-price sales and disciplined cost management, while our refreshed product offer and creative direction are reconnecting the brand with customers."
Looking to the second half, Mulberry - known for its high-end handbags and purses - flagged the launch of new product icons and said it was "well set" for the festive shopping season.
Baldo concluded: "While we remain mindful of the wider trading environment, current momentum gives us confidence as we enter the key festive trading period.
"We're focused on maintaining this progress and continuing to build a stronger, resilient business for the long term."
Mulberry spent much of 2024 fighting a takeover approach from Frasers Group, its second-largest shareholder, alongside falling sales and mounting losses.
However, its majority investor - Singapore's wealthy Ong family - threw its weight behind Baldo, who was brought in to help turn the business around.
Mike Ashley's retail empire walked away from its attempts to take over the company in autumn 2024.
