Mulberry H1 sales flat but losses widen

Sales were flat but losses widened in the first half for luxury handbag brand Mulberry, which said on Wednesday that demand from tourists in London remains strong.

In the six months to the end of September, revenue was broadly flat at £74.6m, but the company's pre-tax losses widened to £609,000 from £515,000 in the same period a year ago. Meanwhile, retail sales were up 2% and like-for-like sales were down 1%.

Operating expenses for the six months rose to £46.6m from £44.6m the year before, reflecting a higher level of investment in marketing and the retail network, which was partially offset by savings elsewhere.

As far as current trading is concerned, retail LFL sales were up 1% for the 10 weeks to 2 December, with international sales up 12% and digital sales 9% higher.

Chief executive officer Thierry Andretta said: "We are delivering on our strategy to grow Mulberry as a global luxury brand. Our international platform is taking shape and we have seen a successful initial trading period in Japan through our collaboration with OGF.

Our focus on full price sales growth has delivered good results with new designs proving popular with customers. The Amberley bag, launched during June 2017, has already become a bestseller.

"We continue to see strong demand from tourists in London and whilst the UK remains uncertain, the group remains in a strong position to invest in further developing the customer experience in key international markets and enhancing its unique UK design and manufacturing base."