Shares in Mulberry Group (MUL ) soared by nearly 30% on Wednesday morning as it said it expects to outperform expectations in a trading update for the year ended 27 March 2021.
The luxury brand, which is known internationally for its leather goods, previously stated in its results for the 26 weeks to 26 September 2020 that revenue for FY21 was expected to be lower than in the year ended 28 March 2020, but that it expected losses to be reduced.
In its results for the 26 weeks to 26 September 2020, the Company reported that group revenue had fallen by 29% to £48.8m from £68.9m in the same period the previous year.
Shares in Mulberry have increased by nearly 23% in value since the beginning of 2021. The stock jumped 29.92% higher this morning to 311p following the announcement.
However, the Group highlighted to investors in this morning’s statement that the business has seen continued strong growth across the Group’s Asian markets, strong sales across its global digital platforms as well as improved margins due to lower mark-down sales.
In fact, digital sales increased 68% to £23.4m, compared with £13.9m the previous year.
As a result of this growth, the Board said it now expects that the Company will outperform expectations and report a small underlying profit before tax for FY21. Looking ahead, the Group's preliminary results for FY21 are expected to be announced on 22 July 2021.
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