© Reuters. The company logo outside a Mulberry store in Vienna, Austria, May 4, 2016. REUTERS/Leonhard Foeger/File Photo
(Reuters)-Mulberry said on Wednesday that demand for its luxury goods has returned to pre-pandemic levels, with sales in the United Kingdom and Asia boosting revenue in the first half of the year by 34% as it prepares to benefit from the holiday shopping season.
Due to weak demand, the company was forced to lay off 25% of its employees in 2020. The company stated that sales trends in October and November had improved, but warned that any restrictions during the holiday season may affect its optimistic outlook.
Mulberry, known for its leather bags, has benefited from the reopening of British stores. The strong growth in Asia has helped it offset the lack of tourists in the domestic market and the weakness caused by the closure of some stores in Europe.
Earlier this month, consulting firm Bain predicted that due to increased spending in the United States and China, especially in high-end shoes, leather goods and jewelry, the luxury goods industry will emerge from the health crisis this year.
Mulberry said that in the next six months, it will invest more funds from its “large cash reserves” for marketing to build brand awareness on a global scale.
The company said that although raw material inventories have increased slightly since March, its factories in the UK and careful planning have helped it solve supply chain problems.
Group revenue for the six months ended September 25 increased by 34% to 65.7 million pounds, helping Mulberry report a pre-tax profit of 10.2 million pounds, compared with a loss of 2.4 million pounds last year. Profit includes one-time gains from the disposal of the Paris lease.
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