Mulberry has issued a profit warning following House of Fraser’s collapse into administration before being bought by Sports Direct.
The luxury British handbag brand has revealed it expects to take a £3 million hit for exceptional costs in its next trading update for the six months to September 30.
The profit warning comes just days after details of House of Fraser’s debts before its collapse were revealed.
Mulberry said that UK trading “continued to remain challenging and sales in House of Fraser stores have been particularly affected”.
“If these sales trends in the UK continue into the key trading period of the second half of the financial year, the group’s profit for the whole year will be materially reduced,” Mulberry added.
At the end of last week it was revealed that major brands including Ralph Lauren and Kurt Geiger are owned millions of pounds from House of Fraser and are likely to make little back after its administration.
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