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LONDON, Oct 5 (Reuters) - British luxury brand Mulberry
reported a year to end-March loss of 14.2 million pounds
($18.4 million) but forecast reduced current year losses after
seeing an improving sales trend since stores re-opened after
COVID-19 lockdowns.
The group, best known for its leather bags, was struggling
due to investment costs and a tough trading environment in its
home market even before the pandemic hit.
After revenue fell 10% in the year to March 28, it was down
29% for the 26-week period to September 26, which Mulberry said
was ahead of its early expectations. Online revenue was up 69%.
"However, we cannot escape the reality that British luxury
and UK cities face a very uncertain future, hampered by
necessary but dramatic social distancing measures and alarmingly
low levels of footfall, as well as the pressures of high rents
and business rates and the upcoming changes to tax free
shopping," said Chief Executive Thierry Andretta.
Shares in Mulberry are down 42% so far this year. In June
the group said it would shed a quarter of its workforce.
It is not paying a full year dividend given the uncertain
outlook.
At the statutory level Mulberry's 2019-20 pretax loss was
33.7 million pounds. That reflected adjusting items of 33.7
million pounds - mainly asset impairments of 32.1 million
pounds, largely resulting from the expected impact of the
pandemic on future trading.
($1 = 0.7736 pounds)
(Reporting by James Davey; editing by Sarah Young)