Mulberry swings into the red
Luxury fashion brand Mulberry has reported a loss of £3.8m in its half year results, down from a profit of £10.2m seen in the same period last year.
Revenue also saw a 1% decline to to £64.9m, with growth of 7% in the first quarter offset by a decline in sales in the second quarter, Mulberry citing the more challenging macro-economic environment.
Mulberry also saw a drop in UK digital sales of 24%, as more customers returned to stores.
The retailer benefited in 2021 from lower operating expenses, a £2m business rates relief, and a one-off profit of £5.7m from the early termination and exit of a lease in Paris. Mulberry has also spent more this year on marketing, £2.7m up from 2021, and expended £1.1m on acquiring assets in Sweden and Australia.
However, the fashion brand still posted an underlying loss of £2.8m, compared to an underlying profit of £4.5m in 2021.
Thierry Andretta, chief executive officer of Mulberry, 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.”