Mulberry lifted by strong China sales as luxury handbag maker shrugs off cost of living crisis
Despite a challenging macro-economic background, luxury fashion brand Mulberry has announced an “improvement” in retail revenue over the second half of the year in its trading update for the year ending 1 April 2023.
The British heritage brand – known for its iconic handbags – reported that revenue was slightly ahead of last year, with trading in line with expectations.
Investors welcomed the results, with shares in the London-listed luxury retailer up over six per cent by mid-afternoon.
British designer items are popular in China and as such its makers have suffered over recent years due to extended Chinese lockdowns imposed by President Xi Jinping. That changed at the turn of the year when China effectively ended its zero-Covid policy.
This has played out well for Mulberry who pinned some of its success on an “improving” environment in China over recent months.
The retailer recently further invested in the Asia Pacific region, launching a duty-free store in Hainan, China.
Chief executive Thierry Andretta said: “This year we have continued to deliver on our strategic objectives while demonstrating resilience in the challenging macro-economic environment.”
The company has also further invested elsewhere in the Asia Pacific region with the acquisition of five stores which had previously been run by the group’s Australian franchisee after it assumed full ownership of Mulberry Australia last summer.
The firm struggled during successive lockdowns, even closing its Paris store. Mulberry’s results confirm the trend that the reopening of China after the end of a long lockdown period has been boosting luxury retail revenue.
The group will announce its financial results on 22 June.