Luxury brand Mulberry reduced its losses during its latest half year results.

The business cut its underlying group pre-tax loss from £15.3m to £7.4m for the 26 weeks ended 27 September. 

Mulberry said the reduction was driven by stable gross profit, strong cost control and a focus on profitable locations in its core markets.

Reported pre-tax loss also more than halved from £15.7m to £6.9m over the period. However, group sales fell 4% from £56.1m to £53.9m over the half.

Overall, like-for-like retail and digital revenue slipped 2%, although full price and off price like-for-like sales in retail stores grew 4% in its key markets (UK, Europe and US).

Asia Pacific revenues dropped 17%, driven by like-for-like declines in stores (-14%) and store closures (-3%) as its strategy of structure simplification continued.

Mulberry CEO Andrea Baldo said: “This has been an encouraging first half as we continue to deliver our ‘back to the Mulberry spirit’ strategy. 

“We’re still early in the turnaround, but the foundations we’ve put in place are working, and we’re starting to see that reflected in performance.”

Looking ahead, the company said it was “well set for the key festive trading period,” with its new Christmas campaign launched earlier this month. 

Baldo continued: “We’re strengthening our margin and improved our cash position through a greater focus on full-price sales and disciplined cost management, while our refreshed product offer and creative direction are reconnecting the brand with customers.

“The strong response to new icons the Roxanne and Hackney shows that Mulberry’s distinctive spirit continues to resonate.”

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