Loewe and Mulberry have solved their financial problems after Covid

Loewe and Mulberry have solved their financial problems after Covid

Loewe and Mulberry both managed to get their financials back on track after the pandemic. The first brand, headquartered in Spain and owned by LVMH, generated a revenue of 456.2 million euro, up 32% compared to 2019. The only current issue: financial authorities are checking in on the taxes paid by the company for fiscal years 2016 and 2017. Mulberry, meanwhile, with 152.4 million pounds in sales for the fiscal year that closed on April 2nd, increased revenue by 32% from the previous year. The first quarter of the new year (from April to June) was 5% up from the same period of the previous period. Retail and digital revenue though were 1% lower due to the lockdowns in China.

Loewe and Mulberry: let’s start with the former

Loewe has put the pandemic behind. According to data published and reviewed by Expansion, the Spanish brand closed the 2021 fiscal year with a revenue of 456.2 million euro. Up 38% on yearly basis and +32% compared to 2019. Operating profits amounted to 68.16 million euro, 8 times that of 2020 and 14.5% higher than that of 2019. Japan (75 million) and Asia without Tokyo (141) were the main markets for the brand. The only concern the company has, is tied to the communication that financial authorities are currently reviewing the statements to check the taxes paid by the brand in 2016 and 2017.

Well done

In the fiscal year that ended on April 2nd, Mulberry’s sales reached 152.4 million pounds (up 32% on yearly basis). Earnings before interest and taxes (21.3 million pounds) was much higher than the 4.6 million recorded for the previous fiscal year. The British brand’s first 3 months of 2022-2023 (April to June) grew 5% compared to the same period of the previous year. Yet, the revenue generated by stores and online sales decreased by 1%, “mainly due to the restrictions present in Continental China – reads a note by the company -, including the shutdown of most stores and our distribution center in Shanghai”.

In photo (from social media), accessories (on the left) Loewe and (on the right) Mulberry

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