Mulberry’s total revenue declined 29% to £48.9 million (US$65.45 million), which primarily reflected the impact of Covid-19 and the closure of the majority of stores from the start of the period, according to the company. Digital sales rose 68% in the period to £23.4 million (US$31.32 million), while retail sales in the Asia Pacific region increased 28%. Digital sales represented 67% of Group revenue in the first quarter, up from 23% a year ago, and 32% in the second quarter from a previous 17%.

Adjusted loss before tax was £1.9 million (US$2.45 million) compared with £10.1 million (US$13.51 million) in the corresponding period of 2019, before adjusting items of £0.5 million (US$669,000), “reflecting actions taken in response to Covid-19, strong growth in Asian markets and strength of digital business”, said Mulberry. Period end Group net cash increased to £8.6 million (US$11.50 million) from £6.4 million (US$8.56 million), “maintained through rigorous cost and cash control”. The company said inventory reduced 13% to £33.6 million (US$45 million), “reflecting the benefit of our agile supply chain and actions taken to manage inventory levels in line with anticipated demand as a result of Covid-19.”

The British leather goods manufacturer implemented a new global pricing strategy in April 2020, which applied the same retail price globally for Mulberry goods and said it optimised its store network, which now comprises 111 retail and franchise partner stores, a net reduction of eight stores since the start of the period under review. Mulberry also released the most sustainable iterations of the Bayswater and Lily silhouettes in environmentally certified leathers. The company has also recently relaunched its most iconic bag, the Alexa, in sustainable leathers, “reflecting Mulberry’s commitment to responsible innovation”, said a statement.

As reported by ILM, UK based Frasers Group announced the acquisition of another 4,335,720 ordinary shares in Mulberry, meaning it now holds a total of 22,121,948 Mulberry ordinary shares, representing 36.82% of the existing issued share capital and voting rights of Mulberry. The retail Group said it could announce a firm intention to make an offer to Mulberry shareholders by December 17.