Luxury handbag-maker Mulberry on Wednesday laid bare how tough conditions are in UK retail as sales fell and it swung into the red.
The AIM-listed firm took a £2.1 million hit from the House of Fraser collapse last year. Although the department stores chain was sold to Sports Direct, some sites where Mulberry had concessions closed and it was not paid for former stock.
Mulberry has since opened concessions with John Lewis, costing £1.3 million to set up.
It warned that the market here is “challenging” as pre-tax losses hit £5 million in the year to March 30, compared with a £6.9 million profit previously.
UK sales dropped 6%, and overall group revenues fell 2% to £166.3 million.
Boss Thierry Andretta said trading has improved in the 11 weeks to June 15, with retail sales up 13%, boosted by the John Lewis concessions, Asian growth, and demand for the new Millie bags range.
His optimism drove shares up 12.5p, or 5%, to 280p.
