Yahoo Finance Mulberry pays cost of not cutting prices as losses widen for bag maker
Luxury bag maker Mulberry on Wednesday said its refusal to lower prices like rivals has dented UK sales.
The AIM-listed British manufacturer’s finance chief Charles Anderson said: “UK customers have got used to a promotional retail market given the challenging macro-environment.” The firm’s policy is not to cut prices, however.
The company also pointed to lower footfall in stores here. Its UK sales fell 4% in the six months to September 28.
Shares in Mulberry fell 18.35p, or more than 6%, to 261.65p.
Total revenue edged up slightly to £68.9 million, helped by a jump in digital sales and growth in Asia.
Pre-tax losses widened to £9.9 million from a £8.2 million loss, after investments into the business. Mulberry expects to trade profitably in the second half.
Boss Thierry Andretta said Mulberry is further developing sustainable ranges and will tomorrow launch a men’s bags collection featuring recycled nylon.
He said: “Looking forward, we will continue to build Mulberry as a global luxury brand with a strong focus on sustainability and innovative product, appealing to both our existing customers and new audiences."
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