British luxury brand Mulberry has become the latest brand to warn on the impact of the coronavirus outbreak, announcing that it anticipates making a small loss in the second half of the year ending 28 March 2020.
All Mulberry stores in the UK closed on 21 March, and international stores are being reviewed on a case by case basis.
Previously, the business had announced that it expected to make a profit in the second half of the current financial year, but as a result of coronavirus’ impact on trading, it now expects a small loss for the period.
However, given the uncertainty of the current climate, the business said it was not possible to provide meaningful guidance on results.
In a statement, the brand said that it had run various potential scenarios to examine the probable impacts from the situation. It said that in addition to ensuring the safety of staff, the board was: “working to protect Mulberry’s cash and to secure future value for its stakeholders by proactively managing its capital as well as identifying opportunities for cost savings”
Commenting on the announcement, Mulberry CEO Thierry Andretta, said: “Our highest priority at this time is the health and safety of our colleagues, customers, and all other stakeholders. Whilst it is uncertain how long the virus will directly impact our markets and our businesses, we remain confident in the strength of our brand, and in our strategy over the long term”.