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Mulberry bags higher profitability

Rising margins on luxury handbags multiplied Mulberry's profits
Mulberry bags higher profitability
  • Strategy of reduced discounting pushed margins up to 71.7 per cent
  • China stores now reopened after dragging down revenues in Q1

Luxury leather goods maker Mulberry (MUL) is feeling the benefit of higher full-price sales and a gain on the disposal of its Paris store lease, which led profits to quadruple to £21.3mn over the past year. Gross margins also jumped to 71.7 per cent in the year to 2 April, up from 63.6 per cent in the previous year, cementing the British heritage brand’s progress from loss-making to profitability over the past five years.

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