Mulberry Group first store to launch in Hong Kong
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UK-headquartered luxury fashion retailer Mulberry Group plans to launch in Hong Kong.
Announcing its first half-year results, the brand revealed plans – but no details – to expand in both Hong Kong and Mainland China through an omnichannel strategy. Other, unidentified global markets are on its radar as well.
The news follows the success of its recent expansion into Japan which helped strengthen the international performance in the six months to September 30.
In Japan, Mulberry Group signed a 50-50 joint venture agreement in July with licensing partner Onward Global Fashion (OGF). An initial presence of four stores in key locations, including Ginza, has already been expanded with a fifth store opening.
Total first-half revenue for the company was virtually flat at £74.6 million (US$99.8 million) compared to £74.5 million a year ago. Sales through its retail channel were up 2 per cent to £56.6 million, but comparable sales eased 1 per cent. Gross margin increased 248 points (up £1.9 million).
While UK sales were flat, international sales grew 8 per cent to £11.3 million. Global digital sales rose 3 per cent to £10.7 million, accounting for 14 per cent of group revenue.
“We are delivering on our strategy to grow Mulberry as a global luxury brand,” says CEO Thierry Andretta.
Questions & Answers
Q.What is Mulberry Group's strategy for expanding into Hong Kong and Mainland China?
What is Mulberry Group's strategy for expanding into Hong Kong and Mainland China?
Mulberry Group plans to expand in both Hong Kong and Mainland China using an omnichannel strategy. The brand has revealed these plans, but has not yet provided any specific details about their implementation.
Q.How did Mulberry Group's international sales perform in the first half of the year?
How did Mulberry Group's international sales perform in the first half of the year?
International sales grew by 8 per cent to reach £11.3 million during the first half of the year. This growth follows the recent successful expansion into Japan, which helped to strengthen overall international performance.
Q.What was Mulberry Group's total revenue for the first half of the year?
What was Mulberry Group's total revenue for the first half of the year?
Total first-half revenue for Mulberry Group was £74.6 million. This figure was virtually flat compared to £74.5 million reported in the same period last year.
Q.What was the structure of Mulberry Group's expansion into Japan?
What was the structure of Mulberry Group's expansion into Japan?
Mulberry Group signed a 50-50 joint venture agreement in July with its licensing partner Onward Global Fashion. This agreement established an initial presence of four stores, which has since expanded to five.
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