Mulberry has posted revenue down by over 10% to £149.3 million (US$193.81 million), with pre-tax loss increasing nearly tenfold to £47.9 million (US$62.18 million) in the 12 months to the end of March 2020. The company said the UK market was challenging even before a nationwide lockdown was imposed by the government; revenue was down by 6% before the pandemic started.

“Prior to the impact of the coronavirus pandemic we were performing well and on track to record a pre-tax profit in the second half of the year”, said Thierry Andretta, CEO, Mulberry. After revenue fell 10% in the year to March 28, it was down 29% for the 26-week period to September 26, which Mulberry said was ahead of its early expectations. Online revenue was up 69%. “However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping”, said Andretta.

Shares in Mulberry have declined 42% so far this year. The company announced in June that is has plans to cut a quarter of its workforce.

Source: Reuters