Mulberry swings to half-year loss
Luxury brand Mulberry has swung to a half-year loss after sales were impacted by economic uncertainty and the rising cost of living.
In the 26 weeks to 1 October, the company posted a pre-tax loss £3.8 million compared to a profit of £10.2 million a year earlier. Furthermore, group revenue edged down 1% to £64.9 million.
While UK retail sales fell by 10% to £34.1 million, sales in China increased by 6% despite Covid-19 restrictions. This meant that sales in Mulberry’s Asia Pacific region rose by 1% to £11.9 million,
Despite a backdrop of economic uncertainty in the period, Mulberry said it made good progress across each of its four strategic pillars of omnichannel distribution, international development, innovation and sustainable lifecycle.
Thierry Andretta, Mulberry chief executive, said: “We have delivered a resilient performance across the group, supported by strong international demand and continued investment in the UK.
“Mulberry has a distinct brand identity, combining British heritage with innovative products and modern craft. What helps set us apart is our commitment to sustainability, as articulated in our ambitious Made to Last manifesto, in which we announced our intention to become Net Zero by 2035.
“This manifesto frames many of the strategic and operational decisions we make – from our commitment to source 100% of our leather from environmentally accredited tanneries to the focus we give to circularity for our Pre-Loved bags programme.”
Giving an update on current trading, the company said it saw an improving trend in retail revenue in the eight weeks to 26 November compared to the same period last year,
Andretta said: “Looking ahead, we are confident in our ability to execute our strategy and to continue to invest across the Group for our future growth, in spite of the challenging economic and geopolitical backdrop. We are well placed for the festive trading period and will continue to drive the business forward to the benefit of all stakeholders.”
