When luxury is not respected in its own home: Mulberry slow down in the UK (which is still worth 70% though) and go up abroad

Mulberry are speeding up in Asia to offset losses in the United Kingdom. The British luxury leather goods brand closed their financial year on March 31: overall revenues increased by 1%, therefore going up to 169.7 million pounds (193 million Euros). Profits, before tax, went down to 6.9 million pounds (7.83 million Euros), therefore dropping by around 8%. “Although the market, in the United Kingdom, is still complicated, we are going to keep investing in our business strategy. The aim is to develop Mulberry into a global luxury brand in order to provide shareholders with higher value”, pointed out CEO Thierry Andretta. Meanwhile, the group is gearing up in Asia: first, they have reorganized their business in China, Hong Kong, Taiwan and Japan, and then they have created a joint venture with SHK in Korea, as much as they did in the other Asian countries. Mulberry will hold 60% of the new company, in which they have invested 3.1 million pounds (over 3.5 million Euros), whereas SHK will hold 40% of it while investing 1,5 million pounds (1.7 million Euros). The aim is to target middle-high class new consumers. As reported by The Guardian, in Mulberry’s stores, which have been opened for a year at least, sales decreased by 9% in the last 10 weeks, until June 2; conversely, overseas sales increased by 1%. The group assumes that foreign tourists pinpoint other European countries for shopping, since luxury competitor brands have raised prices in the United Kingdom to offset the weakness of British currency. Yet, as a matter of fact, 70% of the brand’s incomes still come from the domestic market. At the moment, Mulberry’s bestseller bag is the Amberley model, launched last year. The base price is about 570 Euros.


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