- Huw Hughes
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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.
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
