Mulberry‘s brand awareness investments are working. And the British brand is doing better than expected. On March 29, the brand anticipated that revenues for the 2021-2022 financial year (which closes on April 2) will be better than last forecast. Profit will also be “moderately higher” than expected.
Better than expected
In a short communication, Mulberry claims that the strong sales recorded in the first half of the year (April – September 2021) have continued into the second half. This allows the company to declare revenue for fiscal year 2022 “moderately higher than current expectations”, on the back of maintained gross margins. The leather goods brand itself says it has increased marketing investments in the second half of the year (October 2021-March 2022) to “increase brand awareness”. And despite these expenditures, it expects FY2022 net profit to also be “moderately” higher than current expectations.
This is good news for the company, which has had several ups and downs in recent years. It is a clear sign that it is recovering from the downturn due to the pandemic. In the first half of fiscal year 2022, Mulberry Group’s revenue was £65.7 million. That’s 34% higher than the previous year, and 3% higher than the same period two years ago, before the pandemic.