No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Mulberry reported a jump in first-half sales on Monday as it said its turnaround was taking shape, highlighting strong full-price sales growth and a solid performance in the US.
In the 26 weeks to 26 September, group sales rose 18% year-on-year, with sales in the UK 10% higher, while the US saw a 28% increase. Sales in Europe and Asia Pacific were up 23% and 5%, respectively, while franchise and wholesale revenue rose 52%.
The luxury handbag maker said the first half was supported by strong customer demand across both seasonal and core collections. New product introductions, including Raffia, Crochet, Stevie and Darley Camera Bag performed particularly well, it said, alongside continued demand for icons such as the Bayswater and Lily.
The company also said its recent performance benefited from heightened brand visibility following the Mulberry by Christopher Kane runway show at London Fashion Week. "This represented a significant milestone in the evolution of the brand, generating strong customer engagement," it said.
Mulberry said it had resisted discounting and generated strong full-price sales. Excluding markdown activity, promotional sales represented a 300 basis point lower proportion of sales than the prior year period.
The US business continued to perform well, benefiting from increased customer demand, positive digital performance, including the launch of Bloomingdale's Marketplace, and the expansion of the brand's wholesale presence.
Chief executive Andrea Baldo said: "We are very pleased with the progress made during H1. The strength of our performance reflects the work undertaken over the past year to refocus the group around product, brand and customer, while maintaining a disciplined approach to trading and cost management. The growth in full-price sales is particularly encouraging, demonstrating that our collections are resonating with customers across our key markets.
"There remains much more to achieve as part of our strategic plan, and we are operating in a challenging trading environment. However, we enter the second half with a strong product pipeline, increased brand desirability and a clear focus on delivering our strategy."
At 0710 BST, the shares were up 7.2% at 245.52p.
See latest RNS on Sharecast