Mulberry posts full year loss
Luxury brand Mulberry has posted a pre-tax loss of £47.9 million in the year to 28 March.
Revenue fell by 10% to £149.3 million in the period which the company attributed to a “challenging” UK market and the impact of the Covid-19 pandemic.
While international retail sales increased by 4% to £32.4 million after being boosted by a 30% rise in sales in the Asia Pacific region, the uplift was offset by a 14% decrease in retail sales in the rest of the world.
Mulberry chief executive Thierry Andretta said the company was performing well prior to Covid-19 and was on track to record a pre-tax profit in the second half of the year.
He added: “This was due to progressing our four-pillar growth strategy: our omnichannel distribution, our international development in Asia, a drive for constant innovation, and sustainability. The group has been able to withstand some of the pressures that we, and indeed the entire retail industry, has been faced with.”
Giving an update on more current trading, Mulberry said trading since the start of the new financial period has been better than expected, although group revenue dropped by 29% in the 26 weeks to 26 September.
Andretta added: “Post year-end, the group has continued to benefit from its long-term strategic focus with initial sales ahead of our early expectations. However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping.
“We cannot control external events, but we have a clear strategy and remain confident in the strength of the Mulberry brand.”
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