Mulberry pays cost of not cutting prices as losses widen for bag maker
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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."