(Alliance News) - Soaring demand for Mulberry Group PLC's luxury products in Asia has helped drive substantial interim revenue and profit growth, the fashion designer said Wednesday.
The handbag maker swung to a profit in the first half of its financial year, with trading returning to pre-Covid levels.
Shares in Mulberry shot up 26% on London's AIM before settling back to a 22% gain to 369.00 pence in mid-morning trading on Wednesday.
The company swung to a pretax profit in the 26 weeks to September 25 of GBP10.2 million from a GBP2.4 million loss a year before, as revenue surged 34% to GBP65.7 million from GBP48.9 million.
"Sales in the UK recovered strongly once our stores re-opened. The sales lost from the absence of tourists in the UK and the rationalisation of stores in Europe were replaced by strong growth in Asia," Mulberry explained.
China retail sales increased 38% to GBP11.8 million, reflecting ongoing investment in the region, the company said. US retail sales increased 57% to GBP3.3 million.
Based in Bath, Somerset, Mulberry said retail revenue in the eight weeks to November 20 increased by 35% compared to the same period last year.
"The underlying sales trends experienced in the first half continued into October and November with improving store sales, a strong digital performance and continuing growth in Asia," Mulberry said.
The company declared no interim dividend, having suspended payments last year amid the Covid-19 pandemic.
By Will Paige; willpaige@alliancenews.com
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Mulberry Group (MUL)