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High-end ladies handbag maker Mulberry has more than quadrupled its annual earnings above vaider shoes launch of Stylish Hermes Handbags, driven by a skyrocketing business in Asia, and assured more to explode, stating in The that consumer demand for its goods had remained strong this spring and early summer.
Pre-tax profits for the year to the end of March increased by 358%, to £23.3 million, on revenues that were 69% higher at £121.6 million. Shipments to Asia of the "luxury English" leather handbags – which suppliers qualified by number and through large orders – tripled, contributing to robust growth across the company's sectors.
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The results exceeded market expectations by about SEVEN%. Shares in Mulberry rose by nearly HUNTING FOR % to 115p in early trading in The.
The 50-year-old business, launched in Somerset, is one of many "affordable luxury" brands that have succeeded significantly, joined by the favors of Ted Baker, See by Chloe and J Brand jeans.
Global growth for these UK brands has far outpaced even balanced domestic activities; Godfrey Davis 2011 Supra TK Society Shoes, executive chairman of Mulberry, stated in The: "While we remain wary of the global financial environment, we're committed to accelerating our global development."
Matthew McEachran, an analyst with Singer, said the company appeared to be managing the offshore development well, following Burberry’s example by taking control of distribution channels where it could. Mulberry took over distribution in Malaysia, the Netherlands and the Kingdom last year, and secured full price rights in Amsterdam.
"It's a brand that is really beginning to realize its potential," he said.
Eleven new international stores opened last year, in cities like Beijing, Qatar, UAE and Sydney, and new stores are being considered in other places including Korea, Bangkok and Texas, where a flagship store will open in Soho this fall.
Fashionistas' preference for Mulberry helped push up gross margins from 59% in 2009/10 to 65% last year – an improvement the company attributed mainly to more sales being made at full price, as a shortage of leftover stock at the end of fashion seasons led to smaller clearance sales. Gross margins were also better.
Analysts at Altium, Mulberry’s corporate service, noted how the company’s focus on totes makes global expansion an easier task. Mr. McEachran, however, sees an expanding product range as another opportunity for growth.
A lower tax rate helped lift earnings per share, which increased from FIVE.2p last year to 29.8p. Mulberry said it would increase its full-year dividend from 2.2p to 4p.
The new flagship store in New Bond Street – blocks away from the old venue – and new headquarters incurred £2.3 million in one-off construction costs.
However, the company said trading at the new flagship store was generating sales 49% higher than those during the same period last year at the old store.