UK Mulberry prepares for Christmas as sales rise to pre-pandemic levels Reuters

(Reuters) – Mulberry said demand for its luxury goods returned to pre-pandemic levels on Wednesday as sales in the UK and Asia led to a 34% rise in first-half revenue as it prepares to take advantage of the holiday shopping season.

The company, which was forced to cut 25% of its workforce in 2020 due to weak demand, said sales trends had improved in October and November, but warned that holiday cuts could affect its good forecast.

Known for its leather handbags, Mulberry has benefited from the reopening of stores in the UK as there has been strong growth in Asia, the lack of tourists in the domestic market and the need to compensate for the vulnerability caused by the closure of some European stores.

Earlier this month, Bain Consulting announced that the luxury goods sector will recover from the health crisis this year as a result of higher spending in the United States and China, especially in high-end footwear, leather and jewelry.

Mulberry said it will spend more of its “big money reserves” over the next six months to promote the brand worldwide.

The company said UK plants and careful planning have helped navigate supply chain problems, despite a small rise in raw material inventories since March.

The group’s six-month earnings, which ended on September 25, rose 34% to £ 65.7 million, and Mulberry reported a profit of £ 10.2 million compared to £ 2.4 million last year. The profit includes the temporary gain on the transfer of a lease in Paris.