The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — British luxury brand Mulberry reported a wider first-half loss due to investment costs and a tough trading environment in its home market, but forecast a better second half.
Under Chief Executive Thierry Andretta, the firm, best known for its leather bags, is pursuing a strategy to become a global luxury brand through developing international markets and extending ranges and its online business. However, its shares have fallen 23 percent over the last year.
The group currently trades from 102 owned stores and 21 franchise stores across 25 countries.
It said on Wednesday it made a loss before tax of £9.9 million in the 26 weeks to September 28, versus a loss of £8.2 million in the same period last year.
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Overall revenue was flat at £68.9 million. While international sales rose 12 percent, UK sales dipped 4 percent, reflecting what it described as an increasingly promotion led trading environment and lower traffic to stores.
Mulberry said retail sales were currently reflecting similar trends.
"Against an uncertain backdrop in the UK and with the important Christmas period ahead, the board expects the group to trade profitably and to generate cash during the second half of the financial year," it added.
Shares in Mulberry closed Tuesday at 280 pence, valuing the business at £168.3 million.
By James Davey; editor: Kate Holton.
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.