LONDON (ShareCast) - Aim listed luxury fashion brand Mulberry revealed a 62% increase in half year revenue as international demand for its leather goods continues to flout the economic gloom.

The group, famous for its women’s bags and accessories, said pre-tax profit soared to £15.6m for the six months ended 30 September 2011 from £4.7m in 2010. Revenue increased to £72.3m from £44.7m the year before.

Chairman Godfrey Davis commented, "Our strategy to focus on international expansion continues to bear fruit. Against the backdrop of economic uncertainty, Mulberry continues to build market share internationally and we remain cautiously optimistic about the future prospects of the business."

Retail sales rose 47% while like-for-like sales increased 44%. International revenues increased by 115% to £29.4m.

Wholesale shipments to third parties surged 93% and its Autumn/Winter 2011 orders increased 47% from the same period last year.

During the period, Mulberry opened its New York flagship store on Spring Street, Soho while partners opened five new stores in the Asia-Pacific region.

In the UK, its factory expansion in Somerset was completed, creating 60 new jobs.

"Despite the economic uncertainty, Mulberry continues to build market share internationally whilst maintaining a strong balance sheet. We remain cautiously optimistic about the future," Mulberry said in a statement.

Web sales, which account for 7% of total sales, grew 52% during the period to £4.8m. Gross profit margins increased to 66.2% from 63.9% in 2010.

Mulberry said the outlook for the next six months to 31 March 2012 is positive, however, the potential impact of the economic environment on consumers' spending habits makes the future more challenging.

Retail sales for the 10 weeks to 3rd December 2011 were up 18%, with like-for-like sales up 14% on last year.

Mulberry plans to open seven stores in Europe and the US during the year starting 1 April 2012. It is also planning at least eight further new stores with its partners in Asia-Pacific and the Middle East.

The group has not recommended an interim dividend payment.



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