// Mulberry posts pre-tax loss of £3.8m for the six months to October 1
// Sales dropped 10% across the UK as the group tackled inflationary pressures
Mulberry has swung to a half-year loss as it was impacted by the “challenging macro-economic environment”.
The luxury retailer reported a pre-tax loss of £3.8 million for the six months to October 1 against profits of £10.2 million a year ago.
Sales dropped 10% across the UK as the group tackled inflationary pressures.
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Mulberry increased its prices twice, in March and September, to offset its soaring costs and energy bills.
It said price rises were made to “ensure we make no compromises on the quality of our product” and protect profitability amid inflation.
Online UK sales dropped 24% during the period as customers returned to stores.
The group said its trading improved in China, where sales rose 6% despite Covid restrictions.
Overall trading improved in the eight weeks to November 26, but Mulberry warned over cost and economic pressures.
“The wider macro-economic environment continues to present some uncertainty, in particular with regards inflationary pressures,” Mulberry said.
“As a business we are managing inflationary challenges through various measures.”
Mulberry chief executive Thierry Andretta said he remains confident in the group’s ability to execute its strategy.
He also said Mulberry is “well placed” for the festive trading period.
