Mulberry has swung to a half-year loss

Mulberry has swung to a half-year loss after sales were impacted by economic uncertainty and the rising cost of living.

In the 26 weeks to 1 October, the company posted a pre-tax loss £3.8 million compared to a profit of £10.2 million a year earlier. Furthermore, group revenue edged down 1% to £64.9 million.

While UK retail sales fell by 10% to £34.1 million, sales in China increased by 6% despite Covid-19 restrictions. This meant that sales in Mulberry’s Asia Pacific region rose by 1% to £11.9 million, 

Despite a backdrop of economic uncertainty in the period, Mulberry said it made good progress across each of its four strategic pillars of omnichannel distribution, international development, innovation and sustainable lifecycle.

Giving an update on current trading, the company said it saw an improving trend in retail revenue in the eight weeks to 26 November compared to the same period last year,