Luxury handbag label Mulberry said it expects revenue and profit for the year to April 2 to be ahead of its previous estimates after experiencing “robust” growth.
In a brief statement on Tuesday, the British brand said strong sales in the first half of the year have continued throughout the second half, which will result in group revenue for the fiscal year 2022 to be “moderately ahead of current expectations”. It added that its gross margins have been maintained.
Mulberry said it increased its marketing investment in the second half of the year to “further build global brand awareness”. Despite this additional expenditure, it said it expects full-year profit to also be “moderately” ahead of current expectations.
The group said its balance sheet also remains strong with net cash balances at FY22 expected to be in excess of 20 million pounds.
Mulberry plans to announce its FY22 results on June 29.
In the first half of fiscal year 2022, Mulberry’s group revenue came in at 65.7 million pounds, 34 percent higher than a year earlier, and 3 percent above the same period two years ago, prior to the pandemic.
Retail sales recovered strongly in the UK during the first half as stores reopened, up 36 percent year-on-year to 38 million pounds, and 7 percent above 2019 levels.
In Asia-Pacific, retail sales were up 23 percent year-on-year to 11.8 million pounds, fuelled by a 38 percent increase in China. Meanwhile, US retail sales increased 57 percent in the year to 3.3 million pounds.
The strong sales saw Mulberry swing to a profit before tax of 10.2 million pounds in the first half of the year, compared to a loss of 2.4 million pounds a year earlier.