// Mulberry warns on Covid-19 impact
// All stores in the UK closed
// The retailer expects to make a loss in the second half of the financial year
Mulberry has warned on the impact of the coronavirus outbreak on trading as it expects to make a loss in the second half of the year ending March 28.
All Mulberry stores in the UK closed on March 21, and international stores are being reviewed on a case-by-case basis.
The British luxury retailer expected to make a profit in the second half of the current financial year, but as a result of the outbreak, it now expected a small loss for the period.
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However, Mulberry said it could not provide meaningful guidance on results given the current uncertainty.
“Our highest priority at this time is the health and safety of our colleagues, customers, and all other stakeholders,” Mulberry chief executive Thierry Andretta said.
“Whilst it is uncertain how long the virus will directly impact our markets and our businesses, we remain confident in the strength of our brand, and in our strategy over the long term.”
The retailer said that it had run various potential scenarios to look at the possible impacts on business.
Mulberry said it was “working to protect cash and to secure future value for its stakeholders by proactively managing its capital as well as identifying opportunities for cost savings”.
On Monday, Springboard found that footfall in the UK had dropped to an all time low in the wake of the Covid-19 outbreak.
Shopper numbers slumped last week by 21.7 per cent from the previous week and by 28 per cent year-on-year.
High streets were most affected, with footfall dropping 31 per cent on the previous week and 41 per cent year on year, while shopping centre footfall fell 25.4 per cent year-on-year.