British luxury fashion company Mulberry Group recorded a 32 per cent increase in revenue during the year to April 2, reaching US$184.8 million.
Mulberry’s double-digit growth was mainly contributed by the AsiaPacific retail sales, which surged 28 per cent year-on-year, reaching $34 million. The group’s sales in China alone were up 59 per cent with digital sales representing 42 per cent, while revenue in South Korea increased 11 per cent, illustrating the rapid recovery in the region. The sales were supported by the opening of nine new stores in the two countries, five of them in China.
“Internationally, our continuing growth in Asia helped us further diversify our business,” Thierry Andretta, CEO of Mulberry Group, said in a statement. “Even though extended Covid-19 restrictions in the AsiaPacific region inhibited Q4 performance, we succeeded in mitigating the impact across our markets, largely through our omni-channel distribution strategy.”
According to the company, digital sales accounted for 21 per cent of Asia Pacific revenue, supported by local fulfilment in Japan and South Korea, and a concession gift channel with the Korean messenger platform Kakao.
Despite the strong performance in the region, the luxury fashion group warned the omni-channel revenue is down 1 per cent during the first three months of the new financial year, largely due to the Covid-19 restrictions in China, including the closure of the majority of stores and its Shanghai distribution centre.
“We expect the business to continue to grow, albeit at a slower rate given the severe disruption being caused by the geopolitical situation, inflationary pressures, and Brexit-related challenges,” Andretta added.
Mulberry Group currently operates 37 retail stores across the Asia-Pacific region.