Mulberry records slight loss despite sales growth
09/12/2016
Despite this growth, the group recorded a loss of £500,000 in the period after investing £1 million in its new range by creative director Johnny Coca, who assumed the role in July 2015.
Thierry Andretta, Mulberry CEO, said Mr Coca’s first collection had been “well-received” with nine new handbags having been launched since February.
He added that the UK-based company had no plans to increase its prices due to the weakness of the pound. Sales in the UK rose 12% during the first half as tourists sought to take advantage of a favourable exchange rate.
The company said the second half of the financial year is off to a good start, with retail sales up 4% in the 10 weeks to December 3. It expects additional costs of £1 million for the full year to March 31 due to the increased cost of imported materials and the running of overseas operations.
Mulberry also announced it had formed a new company with its majority owner, Challice Ltd. The new entity will operate the brand’s business in China, Hong Kong and Taiwan. It will see the opening of four stores in the region, as well as the creation of a Chinese-language website.
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