THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
• Omnichannel Futures Conference 2020
• Online Conversion Summit 2020
• Future of Retail Marketing 2020
• The HR Summit 2020
• AI in Retail Conference 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Mulberry hit by tough trading and House of Fraser administration

Mulberry saw its sales decline by 8% to £68.3 million in the six months to 30 September as trading was hit by tough trading conditions and… View Article

FASHION

Mulberry hit by tough trading and House of Fraser administration

Mulberry saw its sales decline by 8% to £68.3 million in the six months to 30 September as trading was hit by tough trading conditions and the impact of House of Fraser’s administration.

UK retail sales were down 11% in the period although international sales climbed by 13%.

The results meant that the company made an underlying pre-tax loss of £3.6 million compared to a loss of £0.6 million in the same period in the prior year. After one-off costs for House of Fraser and the company’s launch in the Korean market were taken into account, the reported loss before tax was £8.2 million.

During the half year Mulberry opened a new flagship store concept on London’s Regent Street. However, it also closed three House of Fraser concessions and one standalone store in the UK.

Following the acquisition of three stores during March as part of the Mulberry Asia acquisition, a further store opened in China in Xian Shin Kong Place. Mulberry also acquired five stores in Japan and 18 in Korea.

In August Mulberry reported that it would take a profit hit of around £3 million due to the collapse of House of Fraser. The company has now signed a concession agreement with John Lewis.

Commenting on the results, Thierry Andretta, Mulberry chief executive, said: “We are delivering on the strategy to develop Mulberry as a global luxury brand with new subsidiaries in Korea and Japan, the creation of digital partnerships in China and the additions to our own store network in Asia.

“In the UK, our most important market, we are pleased to have signed a concession agreement with John Lewis & Partners, advancing our direct to consumer reach. We are proud to be the largest manufacturer of luxury leather goods in the UK and remain committed to supporting “Made in England” through our two Somerset factories.”

Looking at more recent trading, Mulberry said UK retail like-for-like sales were down 7% in the six weeks to 3 November.

Andretta added: “We are confident that our focus on international growth is the correct strategy to develop Mulberry. We are well positioned for the Christmas trading period, which as ever, will determine our full year result.”

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Online Conversion Summit 2020
Online Conversion Summit 2020
April 30 2020
The Hallam Conference Centre, London W1W 6JJ
The Retail Bulletin Online Conversion Summit 2020 Partnered by IMRG
Future of Retail Marketing 2020
Future of Retail Marketing 2020
9 June 2020
Hallam Conference Centre, 44 Hallam St, London W1W 6JJ
The Future of Retail Marketing for Customer Engagement
The HR Summit 2020
The HR Summit 2020
1 October 2020
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2020
AI in Retail Conference 2020
14 October 2020
Hallam Conference Center, 44 Hallam Street, London W1W 6JJ
CONFERENCE AIMED AT RETAILERS WORKING IN MARKETING, IT, DIGITAL, DATA AND TECHNOLOGY