Mulberry has revealed widening half-year losses amid strong international demand and tourist spend which is helping offset a slowdown in its UK market.
For its six month period ending September 30, the luxury bag retailer recorded pre-tax losses of £609,000 compared to £515,000 a year earlier, while total like-for-like sales went down one per cent.
Total revenue increased marginally, from £74.5 million last year to £74.6 million in 2017, boosted by a two per cent uptick in retail sales.
Mulberry chief executive Thierry Andretta said the retailer’s UK market remained “uncertain” but there was a boost from overseas shoppers taking advantage of the Brexit-hit pound, while overseas sales dropped three per cent.
The brand has since welcomed a return to sales growth in the current half year period, with a 12 per cent surge in international sales helping an overall like-for-like sales uptick of one per cent in the 10 weeks to December 2.
“We continue to see strong demand from tourists in London and whilst the UK remains uncertain, the group remains in a strong position to invest in further developing the customer experience in key international markets and enhancing its unique UK design and manufacturing base,” Andretta said.
Mulberry is now focusing efforts on expanding overseas, in particular to Asian markets as a growth area.
It recently announced a deal with Japanese firm Onward Global Fashion in July and Andretta said Mulberry has since seen a “successful” start to trading in the Japanese market.