Mulberry has revealed shrinking losses and accelerating sales as its turnaround efforts continue to gather pace.
The fashion brand, known for its leather handbags, launched a major turnaround plan early last year as part of efforts to shore up its finances and return to profit.
On Wednesday, the London-listed firm reported a pre-tax loss of £8.9 million for the year to March 28, decreasing from a £32.2 million loss a year earlier.
Mulberry said profitability has been buoyed by an increase in sales at full price and reduced promotional activity.
The group also cut its costs by around 10% over the year, despite investment into its marketing, brand and digital operations.
It came as the company delivered a 4% increase in revenues to £125.5 million for the year, with growth accelerating in the second half, which saw an 11% rise.
In the UK, like-for-like sales rose by 8% on the back of strong growth from its retail shops, which saw a 19% like-for-like increase.
It welcomed more new customers as “new products landed and resonated”, while Mulberry also benefited from improvements in stock availability.
Andrea Baldo, chief executive of Mulberry, said: “We returned the business to growth, significantly reduced our losses and strengthened gross margin through greater full-price discipline.
“What encourages me most is the response from UK customers.
“More than half of our retail and digital sales came from returning customers, demonstrating that we are winning back former clients who already know and love the Mulberry brand and the importance of regaining relevance in our home market in order to grow internationally.”
Shares in the company were 2.2% higher at 140p on Wednesday, striking their highest level for two years.
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