Mulberry losses widen as UK sales slide

Mulberry has reported widening losses in its half-year results with UK sales down amid “challenging” market conditions.

Loss before tax and IFRS16 at the British luxury brand was 9.9 million pounds for the 26 weeks ended 28 September compared to 8.2 million pounds for the same period last year, while gross profit dropped slightly to 41 million pounds from 42 million pounds.

The company reported a slight increase in revenue to 68.9 million pounds compared to 68.3 million pounds in the same period in 2018, with international up a steady 12 percent. Asia now represents 14 percent of group revenue compared to 9 percent in 2018.

Difficult UK market

UK sales were less impressive, however, down 4 percent, with the company citing an increasing promotion led retail environment and lower traffic to physical stores.

Commenting on the results in a statement, chief executive officer Thierry Andretta, said: "We have made further progress with our strategy through continued investment in a direct to customer, international, digital and omni-channel model. We are seeing the benefit of recent initiatives in Asia which remains a significant growth opportunity. This will support our ambition for international to become a greater proportion of group revenue.

“As part of our approach to sustainability, we are progressing the use of recycled materials and sourcing 65 percent of our leathers from environmentally certified tanneries while maintaining an accessible luxury price positioning. Looking forward, we will continue to build Mulberry as a global luxury brand with a strong focus on sustainability and innovative product, appealing to both our existing customers and new audiences."

Photo credit: Mulberry, Facebook