Luxury handbag brand Mulberry has warned its full-year pre-tax profits will be “significantly” below expectations due to a sharp decline in sales during the first half.
Mulberry warned in June that this would be a “challenging year”, with the first half expected to be particularly difficult. Today the business reported revenues were down 17% to £64.7m in the six months to September 30.
In a statement, it said: “Actual trading conditions have been more difficult than expected, in part due to the continuing headwinds affecting the luxury sector.”
Executive chairman Godfrey Davis added: ”As expected, the first half has been difficult, but the group remains profitable and cash generative, giving us the resources to invest for the future. Despite the current challenges, I remain confident that we will build on Mulberry’s solid foundations and unique brand positioning in the luxury market to restore growth in the medium term.”