Mulberry swings to a loss after House of Fraser collapse

Mulberry has swung into a loss in the year to March as at is absorbs the after-effects of the collapse of department store chain House of Fraser last year.

In the 53 weeks to 30 March 2019, the British luxury house posted a loss before tax of £5m, compared to the prior year's profit of £6.9m. Revenues slipped from £169.7m to £166.3m, which was down to a drop in UK sales.

International sales were strong, up 7% while UK sales were down. Digital sales were up 27% to £36.9m and now represent 22% of group revenues.

The business said it had made good progress to reduce its exposure to other retailers by shifting towards a direct to consumer model with 90% of its sales now coming via Mulberry channels. It has also shifted its relationship with John Lewis from wholesale to retail.

To enhance its global business it has recently signed a deal with Farfetch, launching a global concession on the luxury fashion platform, and has established new subsidiaries in Japan and South Korea.

Chief executive Thierry Andretta said he expected the UK market to remain uncertain: "Looking ahead, we anticipate that International and Digital sales will continue to grow whilst UK retail trading conditions are expected to remain uncertain. The Group plans to invest further in its new Asian entities during this development phase, enhance its global digital platform and optimise the UK network."