Luxury fashion brand Mulberry has cut its losses by more than half amid its significant turnaround efforts.
The handbag maker said it is “well prepared” for the key Christmas trading period as it also reported a slowdown in falling sales, benefiting from growth in its wholesale business.
Boss Andrea Baldo said he saw an “encouraging first half” despite increased inflationary pressures in the sector.
“We're still in the early stages of recovery, but the foundations we've laid are working and we're starting to see that reflected in performance,” he said.
The group has been driving a major reform programme, which saw the group slash costs and cut around 85 jobs at the end of last year to help improve its performance.
Mulberry also raised £20 million in June to help support its transformation after reporting a 21% drop in revenue last year.
On Wednesday, Mulberry told shareholders that group revenue fell 4% to £53.9 million for the half to September 27, compared with a year earlier.
The retail business benefited from a “strong reaction” in its wholesale division, where revenue rose 36%.
Meanwhile, total retail sales fell 8%, with a comparable decline of 2%. This was driven by like-for-like growth of 4% across all stores.
In the UK, retail sales fell 10% to £28.1 million, while in-store sales fell 7%.
Asia Pacific revenue also fell 17% year-on-year due to lower demand in stores as well as several closures.
The group revealed a pre-tax loss of £6.9m for the half-year, compared with a loss of £15.7m a year earlier.
Baldo added: “While we remain mindful of the broader trading environment, the current momentum gives us confidence as we enter the key festive trading period.
“We are focused on maintaining this progress and continuing to build a stronger, more resilient business for the long term.”
