Shares of Mulberry Group PLC fell 21% on Wednesday after the company reported a swing to pretax loss for the first half of the fiscal year and said that it is well placed for the upcoming festive trading period.
Shares MUL, -15.79% at 0801 GMT were down 60.0 pence at 225.0 pence.
The U.K. luxury brand posted a pretax loss of 3.8 million pounds ($4.5 million) for the six months ended Oct. 1, compared with a profit of GBP10.2 million in the comparable period a year ago, which had included an end of lease one-off profit and business rates relief.
Group revenue decreased slightly to GBP64.9 million from GBP65.7 million, with a 10% decline in second-quarter sales being offset by first-quarter growth.
Mulberry sees its second-half gross margin maintained at first-half levels, which came in at 71%, driven by full-price sales and higher volumes.
The company said it is well placed for the festive period as it has seen an improved trend in retail revenue since early October.
“Looking ahead, we are confident in our ability to execute our strategy and to continue to invest across the Group for our future growth, in spite of the challenging economic and geopolitical backdrop,” Chief Executive Thierry Andretta said.
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