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UK market hits Mulberry's profits

“Challenging” UK market conditions hit luxury British brand Mulberry’s profits in the 26 weeks to 28 September, as its loss before tax deepened to £9.9m.

This is £1.7m worse than its £8.2m loss in the first half 2017/18, which the group put down to its UK arm and investment costs.

Mulberry’s annual revenue, however, grew by £600,000 to £68.9m in the period.

It said a 12% rise in international sales and 4% decline in the UK reflected “challenging” market conditions, adding: “UK business [was] impacted by an increasingly promotion-led environment and lower traffic to stores”.

The group also reported double-digit sales growth in Asia – representing 14% of the group’s total revenue – and it opened four new stores there in the first half, bringing its total Asia store count to 32.

Global digital sales were up 23% year on year, and the group continued to focus on its sustainability efforts, including its use of recycled materials and responsibly-sourced leathers.

CEO Thierry Andretta commented: “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.”

Mulberry launched its collaboration with Scandi brand Acne Studios this month.


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