Mulberry has issued a profit warning because of a weak UK market over the Christmas period and cancelled wholesale orders in Korea.

Mulberry’s total retail sales fell 3% against last year In the 17 weeks to January. In the nine weeks to November 30 they jumped 3% while in the eight weeks to January 25 total retail sales dipped 7%.

The retailer said this was owing to the competitive trading environment in the UK and “substantial” discounting in the sector across Christmas.

International sales were stronger and in the 17-week period increased 40%, in the nine week period surged 49% and in the eight week period rose 34%.

Mulberry chief executive Bruno Guillon said: “Due to tough trading conditions over the Christmas period, which saw significant discounting across the market, Mulberry has experienced lower than expected UK retail sales which, together with wholesale order cancellations from Korea, will adversely impact our profit this year.

“Despite this, the company continues to be cash generative and to invest in the ongoing process of transforming Mulberry from a domestic to a global luxury brand, the progress of which is demonstrated by the continued growth in international retail sales.”

Mulberry said Korea order cancellations are likely to be significant and the retailer now expects wholesale sales for the year to March 31 to be down 10%.

Mulberry joins Mothercare and Debenhams in issuing a profit warning following the Christmas trading period.

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