Mulberry cuts losses despite pandemic hit

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Mulberry Group PLC (LON:MUL) has posted reduced half-year losses despite sales were depressed by the pandemic.

The fashion company said the sales trends experienced in the quarter to September have continued into October but the November lockdowns have hit trading.

Sales in the eight weeks to November dropped 19% compared to last year, the luxury bag designer said in its interim results, though the losses from store closures are partly offset by the omni-channel business and growth in the Asian markets.

READ: Frasers Group ups stake in Mulberry Group to over a third

Retail revenue in Asia Pacific and digital revenue have grown in double digits, while net cash balances as of November 21, 2020, were £5.8mln.

In the 26 weeks to September 26, 2020, revenue tumbled 29% to £48mln due to COVID-19 and the closure of stores during worldwide lockdowns.

The AIM-listed firm cut loss before tax by 77% to £2mln thanks to strong cash control and reduction of the inventory by 13% to £33mln.

Shares jumped 10% to 278.6p early on Thursday.

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