LONDON (ShareCast) - Luxury fashion group Mulberry revealed full year results in line with expectations, after stronger retail sales were weighed down by weaker wholesale, and as it eyes future growth in the US and Asia.

The UK-based maker of upmarket handbags said retail revenue increased 8% for the year ended March 31st 2013 to £107.2m, with like-for-like (LFL) sales up 6% following solid international demand and as it opened seven new directly operated stores in the US, Germany and Switzerland.

Wholesale revenue however fell 16% to £57.9m, "reflecting European account rationalisation and destocking by Asian partners," Mulberry explained.

Group pre-tax profit fell to £26.0m during the year from £36.0m previously, after investment in its directly operated international stores and a contraction in gross margin. Total revenue slipped to £165.1m from £168.5m, following overall weakening demand and slowing growth in Asia.

Basic earnings per share reduced to 32.2p from 43.9p in 2012.

Chief Executive Bruno Guillon said: "After three years of rapid growth, we have had a year of consolidation during which we have laid the foundations for the transition of Mulberry from a UK success story into a global luxury brand."

"Mulberry has a well-established business in the UK and a growing presence in Europe. With over 80% of our sales derived from these markets where the economic climate remains difficult, Mulberry's challenge for the future is to accelerate our brand awareness in the US and Asia. Greater visibility in Asia will allow us to benefit from tourist traffic in Europe and the US at the same time as growing our business locally."

In March the group issued a full year profit warning following weak sales after Christmas and as sales dwindled at it flagship stores in London.

Earlier this week Mulberry's shares sank 8% following news of the shock departure of its Creative Director Emma Hill.

Mulberry has proposed a dividend of 5.0p per share, unchanged from last year.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE