Mulberry got in the red because of British market. At the end of the annual business year, ended last 30 March, the exports of the brand, well known for its leather goods collections, increased by 7%: such good accomplishment offset a negative performance of sales in the United Kingdom, which dropped by 6%. Overall revenues amounted to 166.3 million pounds, therefore declining by 2%, compared to the previous financial year. Profit before tax: 1 million pounds (quite a downturn, compared to 8 million pounds one year ago). The loss before tax was 5 million pounds, compared to the previous financial statements (profits amounted to 6.9 million pounds).
The group announced they made progress as to exports and digital business, though they had to deal with “a complicated playground in the United Kingdom”, owing to a downturn in the store sales, along with tourists’ reduced shopping and Brexit uncertainty. In addition, one of the most critical issues they had to face in Great Britain was about the retail situation: here a “poisonous mix” has been heavily affecting the retail business, owing to consumers’ scepticism and higher costs, coming from rates of interest, salaries and rent expenses. In particular, Mulberry’s business has been affected by the crisis that hit House of Fraser department store: the company lost 3 million British pounds, as the store accounted for 40% of the brand’s sale stores. Mulberry’s creative director is fashion designer Johnny Coca (in the picture).