Mulberry stocks (LON:MUL) have opened higher after the group reduced its six-month loss in the 26 weeks ended September 26, 2020.
In its latest transaction update, the luxury retailer said sales were hit by the latest lockdown, falling 19% in the eight weeks leading up to October.
Revenue fell 29% to £48 million as store closures and demand fell amidst the attack on retailers. Digital sales rose 68%, up from £13.9 million to £23.4 million.
Mulberry CEO Thierry Andretta said:
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“Despite the devastating effects of the global pandemic, we are proud to have made further progress in our long-term strategy to build Mulberry as a sustainable, global luxury brand. This is our focus. We will offer a truly omnichannel network and market-leading digital platform, a merciless focus on Asian presence, innovation and sustainability, providing a beautiful, lasting product at our Somerset factory.
“This strategy has allowed us to withstand some of the pressures we face, and in fact, the wider retail and hospitality sectors. In particular, using our market-leading global digital network, we will replace retail sales with digital whenever possible, achieve high growth in China and South Korea, respond quickly, grow our agile supply chain, increase market responsiveness, reduce lead times and match the increasing digital demand.
“Despite all of these self-help measures, we cannot avoid the fact that the damage caused by the coronavirus to businesses and to the deciments of the high streets and tourism industries is serious. This is why we have made the painful decision to implement a wide range of cost-cutting and optimization programs to ensure that businesses can overcome this challenging time.
“As we look to the future, we are confident in the relationship and durability of the strategy and mulberry brand. Of course, many obstacles are ahead. In particular, future changes to tax-free shopping in the UK could hamper the broader retail and economic recovery, but we are grateful to be able to open the door again in the UK on December 2nd and trade on all platforms during this important Christmas trading period. We would like to take advantage of this opportunity to thank our colleagues for their resilience, hard work and dedication to mulberry.”
Mulberry Shares (LON:MUL) jumped to 10% on early trading on Thursday to 278.6p.
