Mulberry losses widen in ‘promotion led’ UK high street
Luxury handbag retailer Mulberry widened its losses in the first half of the year as it struggled in the UK’s “increasingly promotion led” market.
The company reported a loss before tax of £9.9m compared to a loss of £8.2m the previous year, reflecting the retailer’s British high street woes and its increased investment in Asia as it seeks to shift its UK focus.
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Mulberry secured muted revenue growth in the first half of the year as the brand’s ailing UK business offset international success.
Mulberry reported revenue of £68.9m in the 26 weeks to 28 September, up from £68.3m the previous year, driven by a 12 per cent jump in international revenue.
Meanwhile, UK revenue, which accounts for 65 per cent of group revenue, slumped four per cent.
The British brand is in the process of shifting its focus away from the UK towards Asia, which now makes up 14 per cent of group revenue from nine per cent in 2018.
Trading in the UK is challenging due to subdued demand from British shoppers and heavy discounting, Mulberry said.
Mulberry chief executive Thierry Andretta said: “We have made further progress with our strategy through continued investment in a direct to customer, international, digital and omni-channel model.
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“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.”