Luxury brand Mulberry Group plc (MUL.L) reported Thursday a 54 percent surge in pre-tax profit for fiscal year 2012, as revenues grew 38 percent on improved international demand for its brand. But its shares dropped some 22 percent in morning trade as the group said its short-term trading outlook is more challenging, given the current economic conditions.
Chairman Godfrey Davis said, however, that the company remains confident about its long term future. "We continue to focus on developing our business internationally, opening new stores and building the foundations for long term growth," he added.
Announcing preliminary results for the year ended March 31, the company said its profit before tax surged 54 percent to 36 million pounds. On a per share basis, earnings climbed to 43.4 pence from 29.1 pence per share in the prior year.
Revenues for the year grew 38 percent to 168.45 million pounds, with 61 percent growth in international sales.
Mulberry opened 14 new stores during the year in the UK, the Netherlands, the USA, Korea, Singapore, Thailand and Taiwan. It targets to open 15 to 20 new international stores in the current financial year.
Retail sales increased 36 percent from the preceding year, with like-for-like sales increasing 26 percent. Online sales grew 58 percent, which accounted for 9 percent of group sales. Wholesale shipments to customers during the year were up 43 percent.
The board is also recommending a dividend of 5 pence per share, up from 4 pence paid last year, to shareholders of record on August 17, 2012, payable on September 17.
The company also noted that the investment in a second factory in the UK will make it the largest UK manufacturer of luxury leather goods.
Mulberry shares are currently trading at 1,575 pence, down 438 pence or 21.76 percent, on a volume of 89 thousand shares, against a three-month average volume of 38 thousand shares on the LSE.
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