Mulberry reports pre-tax loss as it continues to drive return to growth

For the six months to September 30, total sales fell 17% to £64.7m and retail sales were down by 9% to £45.1m. Wholesale sales were down 31% to £19.6m.

The pre-tax loss is in line with expectations, reflecting lower sales, the increase in costs associated with new stores opened this year and last and the lower gross margin.

However, for the nine weeks to November 29, retail sales were up 8%, driven by a strong performance in its online business, which was up 18%.

Mulberry chairman Godfrey Davis said: “The results for the six months to September 30, 2014 are in line with the guidance given on October 14.

“We have continued to take steps to return the business to growth and sales for the nine weeks to November 29 are encouraging. Total retail sales are up 8% compared to last year, including online sales, +18%.

“We have worked hard to re-engage with our customers and our tongue-in-cheek Christmas video #WinChristmas has been viewed well over one million times.

“After a difficult couple of years, the steps that we have taken to return Mulberry to growth are beginning to bear fruit and looking further forward, we expect to gain further momentum from the appointment of Johnny Coca as our new ceative director.”