Mulberry'S International Market Has Warmed Up, And Reform Has Achieved Initial Success.

British luxury package Brand Company Mulberry announced its 2018-2019 performance report a year ago, showing mixed feelings last year. Mulberry has been in a critical spanition period in the past year. As of March 30th this year, its international business in Asia focused on the rebound, and its performance in the digital channel was strong. However, its sales in the UK declined, dragging down the overall performance of the company, resulting in a year-on-year decline in overall business revenue last year.

Mulberry international sales volume increased 7% last year, up to 51 million 600 thousand pounds, while the international market share of the company's overall market share has also increased, reaching 31%. This is mainly influenced by the Asian strategic adjustment of the company.

Mulberry also has subsidiaries in Korea and Japan. In Korea, the group's main business has been adjusted from wholesale to retail, where 18 stores have been bought and 2 new stores have been opened. In Japan, the group also accelerated the expansion of the retail market in Japan. In addition, the group's digital business in China has also promoted sales growth.

Mulberry over the past year, the performance of digital channels has also been more brilliant, with sales growth of 27% and contributing 22% of the company's total revenue, which is 17% in fiscal year 2017-2018. Muberry last year's "direct to consumer" (Direct-to-Custmoers) full channel strategy has achieved initial success.

In addition to the full Japanese business platform launched in Japan, Mulberry also started its brand store in the Chinese market with Tmall mall and temple library online. In addition, the company also granted luxury electric business Farfetch franchise in April this year, and added new stores in New York and Dubai according to the new store concept.

However, by the closure of the department store brand House of Fraser (hereinafter referred to as HoF) and the weakening of the UK consumer market, the performance of Mulberry in the UK market in the past year is still not satisfactory. Britain's operating income was 11 million 470 thousand, down 6% compared to the same period last year.

HoF has been an important partner of Mulberry, and is the most important franchisee for Mulberry products overseas. Mulberry has 40% of its outlets in the department store of HoF. The collapse of HoF department last year directly led to Mulberry loss of 3 million pounds, and resulted in the cancellation of 2 million 100 thousand of the luxury brand's bad debts and fixed assets, as well as the impairment cost of fixed assets of 800 thousand pounds.

Dragged down by poor performance in the UK market, Mulberry's total revenue fell 2% last year, totalling 166 million 300 thousand. Taking into account the earnings performance of the company in the past 53 weeks, compared with the 52 week statistics last year, the total annual revenue should decline more than 3%. At the same time, the group reported a very weak pre tax profit, down from 6 million 900 thousand a year ago to 5 million.

However, as Mulberry changed its cooperation mode with John Lewis, another partner of the one hundred goods store, from wholesale to retail franchise, about 90% of Mulberry's revenue came from its sales channels last year, and the franchising point of John Lewis "exceeded expectations".

This change actually hedged the other negative effects in the UK market. Mulberry said that the adjustment of John Lewis cooperation mode "allows the group to recover a large number of losses caused by HoF failure".