Mulberry H1 losses leap 79% despite healthy revenues
UK retail saw a 6% increase to £36.2m during the period, despite impact by the broader economic environment
Luxury fashion group Mulberry revealed that operating losses grew 79% to £10.4m, despite a 7% increase in revenues to £69.7m for the half year ended 30 September.
The retailer also sustained an underlying loss before tax of £12.3m, which increased from £2.8m in 2022. This included £3.3m of SaaS costs, further operational costs incurred by new stores in Sweden and Australia, and additional investments for future growth.
Meanwhile, UK retail saw a 6% increase to £36.2m during the period, despite impact by the broader economic environment. The group’s international retail sales jumped 34% to £23.5m.
According to the group, it is “well” prepared for the second half of the financial year, which is weighted in trading given the importance of Christmas.
Mulberry also further emphasised its move from wholesale to retail.
Thierry Andretta, CEO of Mulberry, said: “Against a challenging macroeconomic backdrop, which is impacting the entire luxury landscape, we have continued to invest in our long-term future.
“Our strategy to transform our international businesses to a direct-to-consumer model has enabled us to control the entire customer experience in Sweden, Australia, New Zealand and Japan. Our investments in the period in our digital systems, stores and products will power future growth.”
He added: “Looking ahead, we are well placed to capitalise on the important festive trading period and expect the usual second half weighting to trading.”