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British sustainable luxury brand Mulberry reported a pre-tax loss of £3.8m in the first half of this year, down from a profit of £10.2m the year before, as UK sales saw a 10% decrease to £34.1m compared to £38m last year.
The group’s results are thought to have been impacted by UK retail sales in the broader economic environment, with Mulberry’s revenue during the first half also down 1% to £64.9m compared to last year’s £65.7m.
However, the company reported that its international sales remained in line with the same period last year at £17.5m, while a gross margin of 71%, a 2% rise on last year, was achieved due to “continued strategic focus” on full-price sales and increased volume efficiencies.
In addition, digital sales reportedly accounted for 25% of the group’s total revenue in the period, which was 4% lower than in the period last year, as UK customers return to physical shopping.
Thierry Andretta, CEO of Mulberry, said: “We have delivered a resilient performance across the group, supported by strong international demand and continued investment in the UK.
“Looking ahead, we are confident in our ability to execute our strategy and to continue to invest across the group for our future growth, in spite of the challenging economic and geopolitical backdrop.”
He added: “We are well placed for the festive trading period and will continue to drive the business forward to the benefit of all stakeholders.”
