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Retail

Mulberry offloads baggage with turnaround on track after full year profits rise

Mulberry has seen an increase in tourist spending in London but domestic demand in the UK has been softer

Luxury bag maker Mulberry Group plc (LON:MUL) delivered a 21% increase in full year pre-tax profits, supported by growth in online sales and the success of new products.

The company made pre-tax profit of £7.5mln in the year ended 21 March 2017, compared to £6.2mln a year earlier. Revenue rose 8% to £168.1mln from £155.9mln the prior year, with 19% growth in online sales.

Like-for-like retail sales were gained 1% in the 10 weeks to 3 June, with UK like-for-like sales up 2%, as an increase in tourist spending in London offset softer domestic demand.

Mulberry said new products launched under the creative direction of Jonny Coca, including the best-selling Zipped Bayswater bag, were well-received.

Last year the group expanded its omni-channel offering with local mulberry.com sites introduced in China and Korea. It also established Mulberry (Asia) Limited to develop the brand in China, Hong Kong and Taiwan.

“Looking ahead, we will continue to invest in advancing our international development and increasing Mulberry's relevance to our customers' rapidly evolving lifestyle,” said chief executive Thierry Andretta.

Shares fell 2.0% to 1,126.0p in early trading.

Mulberry had a successful turnaround following a challenging period two years ago when it published a series of profit warnings and replaced its chief executive Bruno Guillon.

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