Mulberry feels economic squeeze

Despite reporting robust first-half sales in the six months to September 30, since the period-end to December 6, UK retail sales fell 1 per cent and like-for-likes plummeted 12 per cent.

In the first half, group sales rocketed 29 per cent to£27.8 million. Profit before tax rose 6 per cent to£1.33 million. UK retail sales soared 21 per cent, or 5 per cent on a like-for-like basis. Shipments to third parties rose by more than 40 per cent.

The retailer has also warned that the downturn will have an impact on its full-year expectations.

Chairman and chief executive Godfrey Davis said: “Christmas trading is an important contributor to turnover and profit, as are the January sales. With forecasters continuing to project a global downturn, the outcome for the year will be impacted by trading in the weeks ahead.

“It is clear that the economic climate is having an adverse impact on the buying behaviour of our customers.”

He added: “Mulberry has delivered strong growth during the first half of the year as a result of our sustained investment in building the business. Since September, the global economic outlook has become significantly more difficult. However, we believe we are well positioned, with our strong brand and balance sheet, to weather the challenges ahead.”

Spring/summer 2009 wholesale order books is up by more than 15 per cent. Sales through the retailer's web site Mulberry.com now account for 4 per cent of group sales.