// Mulberry suspends final dividend amid widening full year pre-tax loss
// Full year pre-tax loss came in at £47.9m compared to last year when it recorded a loss of £5m
// Despite this, it says trading is improving
Mulberry has seen its full-year loss dramatically widen, prompting it to suspend the final dividend due to the Covid-19 pandemic.
The British luxury good retailer and brand said that for the 52 weeks ended March 28, reported pre-tax loss was £47.9 million, compared with a loss of £5 million for the prior financial year.
On an underlying basis, pre-tax loss was £14.2 million compared to a profit of £1 million last year.
Operating loss was not much better, widening year-on-year from £4.9 million to £43 million, and swinging from £1.1 million profit to £9.3 million loss on an underlying basis.
Meanwhile, revenues decreased year-on-year from £166.3 million down to £149.3 million, although digital sales on its own were up 69 per cent year-on-year.
Mulberry also reported a 12 per cent reduction in its inventory to £34.9 million.
As a result of the performance, the retailer said it would suspend final dividends.
Mulberry said trading since the start of its current financial year, trading has been ahead of its expectations.
It said that although revenue for the half-year period from March 29 to September 26 was down 29 per cent compared with the same period last year, mostly due to lockdown restrictions, there has been an improving trend since stores reopened.
The retailer also expected losses to be reduced in the current financial period.
Mulberry added that it extended its banking facilities with HSBC until March 2022 and renegotiated covenants to reflect the Covid-19 pandemic.
“The strength of our digital business has resulted in initial sales in the period to date being ahead of early expectations, with growth in Asia helping to offset some of the impact of the shut down in the UK, Europe and North America,” Mulberry said.