London—Armed with a 25% comparable store sales gain during the holiday season, Mulberry Group PLC said today that it expects its fiscal 2012 results to exceed earlier estimates.
The British leathergoods and accessories company reported that for the 16 weeks ended Jan. 14, total sales rose 30%.
“I am delighted that trading during Christmas and the New Year has been strong and consequently the results for the year to 31 March are likely to exceed our earlier expectations,” said Mulberry chairman and chief executive Godfrey Davis, Mulberry’s chairman/chief executive.
Similarly to Burberry, which reported its latest quarterly results this week, Mulberry has benefited from increased demand in its stores especially by Chinese and Asian tourists. Davis said the company’s Bayswater bag has been a top seller, followed by its iconic Alexa handbag.
In addition, Mulberry reported that “wholesale orders for Spring/Summer 2012 are currently up 35% compared to the Spring/Summer 2011 end of season total with more than two months of the selling season remaining.”
Retail analysts in the United Kingdom have been particularly gung ho for Mulberry. Philip Dorgan at Panmure Gordon, said Mulberry “has barely scratched the surface of its global potential, with only a handful of stores in many key luxury goods markets.”
Dorgan upgraded the current year forecast by 2 million pounds to 37 million pounds pre-tax and next year’s forecast from 44 million to 45 million pounds. “It is one of our top picks in 2012, because we feel that it can deliver significant, sustained top-line growth that will have a leveraged impact upon profitability.”