British luxury handbag business Mulberry was today forced to report a slump in annual profits, despite saying sales have improved since November.
Pre-tax profit fell 87% from £14m to £1.9m, on sales down 9% to £148.7m, during the year to March 31.
UK retail sales dropped 7% to £74.7m and wholesale performance was down 29% from £54.5m to £38.8 million.
However, Mulberry chairman Godfrey Davis said the retailer had seen a “positive uplift in sales since November” as a result of efforts to realign its pricing strategy.
It also expects the wholesale business to stabilise during the current financial year.
The business also claims that total retail sales for the 10 weeks to June 6 were up 17%, a growth of 15% on a like-for-like basis.
It follows a number of profit warnings issued by the Somerset-based brand in 2014.
As previously reported, during the year Mulberry announced the appointment of new chief executive Thierry Andretta, who joined from Italian luxury jewellery brand Buccellati on April 7, and new creative director Johnny Coca, who will join from Céline in July.