Mulberry swings to annual loss of 5 million pounds

For the 53 weeks ended 30 March 2019, Mulberry Group Plc posted revenue of 166.3 million pounds compared to 169.7 million pounds in 2018. The company said international sales rose 7 percent but UK declined 6 percent affected by House of Fraser entering into administration during August 2018 and general weakness in the wider UK retail environment. The company’s adjusted profit before tax amounted to 1 million pounds against 8 million pounds in the previous year, while reported loss before tax was 5 million pounds compared to profit before tax of 6.9 million pounds in 2018.

Commenting on the results, Thierry Andretta, Mulberry’s CEO, said in a statement: "The Group has delivered results in line with expectations and is making good progress in advancing its International strategy and direct to customer model whilst managing a challenging UK market. We have established new subsidiaries in Japan and South Korea and introduced important digital partnerships in China. Looking ahead, we anticipate that international and digital sales will continue to grow whilst UK retail trading conditions are expected to remain uncertain."

Total retail and online sales looked promising during the period

For the 11 weeks to June 15, Mulberry said, total retail sales including digital were up 13 percent with international retail up 31 percent and UK retail up 7 percent. During the same period, digital sales increased 53 percent. The company has declared a dividend of 5p per share.

At March 30, 2019, the company had 103 directly operated stores, of which 48 stores were in international markets. 23 stores from the franchise network transferred to company-owned retail during the period, while its multi-brand wholesale and Mulberry franchise partner businesses continued in the USA, Scandinavia, Australia, Southeast Asia, the UK and Europe. Two new franchise partner stores were opened in Australia with LRG and one franchise partner store was opened in Dubai during the year under review. The franchise partner store network at the period end totalled 22 stores in Asia Pacific, Europe and the Middle East.

Picture:Facebook/Mulberry