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luxury fashion firm mulberry It has more than halved its losses amid major turnaround efforts.
The handbag maker said it is “well prepared” for the key Christmas trading period as it also reported a decline in sales, having benefited from growth in its wholesale business.
Boss Andrea Baldo said there was an “encouraging first half” despite widespread inflationary pressures in the sector.
“We are still in the early stages of transformation, but the foundation we have laid is working and we are starting to see it reflected in performance,” he said.
The group is moving ahead with a major overhaul program that saw the group drastically cut costs and eliminate about 85 jobs late last year to help improve its performance.
Mulberry also raised £20 million in June to aid its transformation after reporting a 21% drop in revenue last year.
On Wednesday, Mulberry told shareholders that group revenue in the half year to September 27 fell 4% to £53.9 million from a year earlier.
The retail business benefited from a “strong response” at its wholesale arm, where revenue rose 36%.
Meanwhile, total retail sales declined 8%, with uniform sales falling 2%. This was buoyed by 4% like-for-like growth across all stores.
In the UK, retail sales fell 10% to £28.1 million due to a 7% decline in store sales.
Asia Pacific Revenue also declined 17% year-on-year due to weak demand at stores as well as multiple closures.
The group revealed a pre-tax loss of £6.9 million for the half year, down from a loss of £15.7 million a year earlier.
Mr Baldo said: “While we remain mindful of the broader trading environment, the current momentum gives us confidence as we enter the key festive trading period.
“We are focused on maintaining this progress and building a strong, resilient business for the long term.”