Mulberry profits to beat expectations after 'careful' cost control

The embattled fashion retailer expects full-year sales to be in line with market expectations of £148m in the year to March 31, down from £163m the previous year.

Mulberry said that trading improved as its spring collection was introduced to stores in November. UK retail like-for-likes slumped 17% in the first half before rebounding to a 3% rise in the second half, resulting in a 7% fall over the year.

However a 1% rise in its full-year retail revenue, driven by its overseas business, was pulled down by a decline in its wholesale arm.

Mulberry said its full-year figures will include an exceptional non-cash impairment charge of between £2.5m and £3m relating to five stores. 

The retailer unveiled the appointment of Thierry Andretta as its new chief executive last month, after nearly a year without a boss.

Mulberry chairman Godfrey Davis said: “The encouraging retail trends over the last five months reflect our reinvigorated product offer and focus upon our customers.

“We are delighted to have announced the appointment of our new CEO, and look forward to the arrival of our new Creative Director, Johnny Coca, during July.”  

Mulberry reports its full-year performance, including profits, on June 11.