Mulberry performs poorly during the semester: Brexit betrayed the brand with its complicated internal market, and the English brand is left to hope for China’s rescue. In fact, it counts on Asia to start growing again.
The British company manufacturer of leather goods and clothes generated a loss before taxes equal to 9.76 million UK pounds, or of about 11.38 million euro. The rough slowdown of the local market had a very important impact over the brand’s poor performance: sales in the United Kingdom were down by 4%. Also weighing down on the brand are the investments made throughout the semester.
Numbers and Words
As we were saying, Mulberry didn’t perform. The brand’s revenue reached 68.87 million UK pounds (about 80 million euro), which is somewhere around the 68.33 million of the previous fiscal period. Supporting the losses generated in the internal market is the incremented sales beyond UK shores, where the brand grew by 12%. The national market’s performance was surely influenced by the complex and unstable economic and financial situation cause by Brexit. “We made improvements towards the investment strategy that helps us get closer to the direct-to-consumer model -, comments the CEO, Thierry Andretta -, for international, digital and omnichannel markets. We are already noticing the benefits of our recent initiatives in Asia, which remains an important region filled with growth opportunities. That’s what will help us shift a larger percentage of our revenue to sales made abroad”.
An important chapter is dedicated sustainability-focused initiatives created by Mulberry. Andretta explained that mulberry” is increasing the use of recycled materials, as well as in the purchase of hides coming from certified tanneries that respect the environment”.
Un capitolo a parte è dedicato alle iniziative di Mulberry orientate alla sostenibilità. Andretta ha spiegato che “stiamo crescendo nell’uso di materiali riciclati e nell’acquisto di pelli provenienti da concerie certificate per il rispetto ambientale”.
Pictures from Mulberry’s website