Mulberry phases a comeback with ‘sturdy’ Christmas gross sales after refocusing on British buyers

Mulberry’s comeback showed further signs of promise this week as the luxury retailer unveiled its Christmas trading update. 

The retailer said it enjoyed a ‘strong festive trading period underpinned by full-price sales mix and newness’. 

Mulberry said total group sales jumped 5.3 per cent in the 13 weeks to 27 December, with like-for-like retail and online sales up 11 per cent.

Once synonymous with ‘It girls’ like Alexa Chung – who has a bag named after her – Mulberry has struggled in the face of other luxury designers in recent years.

The business has been on a mission to position Mulberry as a ‘British lifestyle brand’ and refocused its attention on its home market.

Making a comeback? Signs of Mulberry’s comeback showed further signs of promise this week

Shares in Mulberry rose 4.76 per cent or 5.00p to 110.00p on Wednesday, having risen around 8 per cent in the last year.  

Growth came despite a heavily discounted wider retail market, reflecting a shift towards selling more products at full-price rather than relying on promotions. 

Full-price retail sales increased 19 per cent over the period, Mulberry said.

It added: ‘The strength of this performance reflects the Group’s ongoing delivery of its new strategy – focused on simplifying the business, refreshing the brand, and more fully leveraging customer insights.’ 

As part of the strategy, the company ‘refocused’ on the UK market. Total UK sales rose 2.5 per cent in the period, with like-for-like sales up 6.5 per cent, Mulberry said. 

Underlying sales were also stronger overseas, including a 12.6 per cent increase in the US and 27.2 per cent rise surge in mainland Europe. 

Asia Pacific sales were modestly higher overall, despite store closures, with like-for-like growth buoyed by strong online trading during the November Double 11 shopping festival. 

Andrea Baldo, Mulberry’s chief executive, said: ‘We have delivered a strong performance during the festive period. 

‘While there remains plenty more to be done, it is encouraging to see the early signs of our “Back to the Mulberry Spirit” strategy delivering. 

‘We have maintained disciplined cost control, while at the same time growing full-price sales by having products that resonate at the right price.’

He added: ‘The response to our Christmas campaign has been in line with expectation, with particularly strong demand for the Roxanne, the Hackney and the continued resurgence of the Bayswater.’

Mulberry is majority controlled by its biggest investor, Singapore’s wealthy Ong family.