Mulberry looks abroad as it sinks further into the red after refusing to cut prices amid High Street gloom
Luxury handbag maker Mulberry has sunk deeper into the red as fewer shoppers visited its UK stores and it refused to slash its prices.
The retailer became the latest to blame tough conditions on the High Street for its woes.
The Somerset firm’s shares tumbled as much as 6 per cent as a slowdown in the UK, together with higher investment costs for international expansion, pushed it to a £9.9million pre-tax loss for the six months to September 28.
Luxury handbag maker Mulberry has become the latest UK retailer to blame tough conditions on the High Street for its woes
This compares with losses of £8.2million a year earlier. Its policy is not to cut prices, however, with its handbags selling for between £395 and £3,500
UK sales dropped 4 per cent, although online sales strengthened.
Mulberry said: ‘Trading conditions remained challenging with subdued demand from domestic UK customers.’
But it forecast a better second half.
The UK makes up nearly two-thirds of sales, but chief executive Thierry Andretta is looking to increase its international business – and Asia in particular – to cut reliance on its home market.
International sales rose 25 per cent with Asia soaring by 63 per cent.