Mulberry Group posted a loss of 1.4 million pounds, or $2.2 million, in the fiscal year ended March 31, as sales fell and the brand reshaped its core strategies.
Sales were down 9 percent to 148.7 million pounds, or $237.9 million, dampened by a 29 percent fall in wholesale revenue. Retail sales grew 1 percent during the period, fueled by new store openings.
The company said in a statement Thursday the new year has gotten off to a robust start with a 17 percent uptick in total retail sales, and a 15 percent growth in like-for-like sales compared with last year. All figures have been converted at average exchange rates for the periods to which they refer.
As reported, Mulberry has recently revamped its pricing architecture to focus on bags and accessories costing 500 pounds to 1,000 pounds, or $775 to $1,550, in a bid to recapture its core customer. Leather goods account for more than 90 percent of sales.
Mulberry said that as a result of the changes, bags within the new core price range represented 66 percent of the assortment for spring compared to 45 percent in the previous year.
The company added that, going forward, it plans to align the price point of shoes and ready-to-wear with bags in order to make the collections “more relevant” to the group’s core customers.
The company said it began to see a positive uplift in retail sales in November as a result of new products and the actions taken in the first half to realign the product pricing strategy. It added that digital sales were up 15 percent in the year, accounting for 12 percent of group sales. During the period it opened four new directly operated international stores and one concession.
In November, Mulberry also announced that former Céline accessories designer Johnny Coca would join as creative director, and earlier this year it named industry veteran and Mulberry board member Thierry Andretta as chief executive officer.
“We have seen a positive uplift in sales since November as a result of the actions we took at the beginning of the year,” said Mulberry’s chairman Godfrey Davis.
“We have focused on creating desirable new products across the entire Mulberry range whilst continuing to invest for the longer term. Our initiatives to re-engage with our customers have delivered promising results,” he continued. “Under the leadership of Thierry Andretta and the creative direction of Johnny Coca, we look forward to the Mulberry brand fulfilling its global potential.”
Andretta said the company was committed to fortifying its position in the U.K. while continuing to pursue an international growth strategy. “We are focused upon translating the luxury values and Britishness of the Mulberry brand to a global audience,” he said.