Mulberry swings to full-year loss

Mulberry has announced that group revenue fell by 10% to £149.3m in the full-year ended 28 March 2020, in light of a “challenging” UK market and the impact of the pandemic towards the end of the financial period. 

The group also swung to a pre-tax loss of £14.2m, down from an adjusted profit of £1m the prior year, before adjusting items of £33.7m in light of the expected impact of Covid-19 on future trading. 

International retail sales increased by 4% to £32.4m in the period, however, representing 26% of retail revenue, up from 23% the year before.

In addition, trading since the start of the current financial period has been ahead of early expectations, according to the group.

Group revenue was down 29% for the 26-week period ended 26 September 2020, though it has seen an “improving trend” since stores have reopened post-lockdown. In addition, digital revenue has been up by 69% in the same period. 

Mulberry has nonetheless announced its decision to suspend its full-year dividend in order to “maintain a robust liquidity position given the uncertainty and duration of Covid-19.”

CEO Thierry Andretta said: “Post year end, the group has continued to benefit from its long-term strategic focus with initial sales ahead of our early expectations.

“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.”

He added: “We cannot control external events, but we have a clear strategy and remain confident in the strength of the Mulberry brand. I would like to take this opportunity to once more thank my colleagues for their hard work, resilience and dedication during these difficult times.”