Shares of Mulberry Group PLC (LON: MUL) are trading moderately positive on the day after the company said trading activity improved after a sharp decline during lockdowns.
Reporting for the six months to September 26, Mulberry said revenue fell by 29% to £48.9 million amid a sharp decline in sales in the first quarter of 39%. Trading activity improved in the second quarter, where sales declined 18%.
“I am proud that in spite of the devastating effects of the global pandemic, we have made further progress on our long-term strategy to build Mulberry as a sustainable global luxury brand,” said CEO Thierry Andretta.
“As we look to the future, we remain confident in our strategy and in the relevance and durability of the Mulberry brand.
Mulberry posted an adjusted pre-tax loss of £1.9 million, which is still better than a £10.1 million loss a year earlier.
The firm has been boosted by sales of new Alexa bags, which were inspired by TV presenter and model Alexa Chung. The company already sold more than 1000 bags, with the cost of each between £895 and £1295, Andretta told The Evening Standard.
It’s been reported last week that Mike Ashley, the owner of Newcastle United Football Club, increased his stake in the fashion company.
Mulberry share price is trading about 1.5% higher after initially jumping by 10% this morning to hit a 9-month high.
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