British sustainable luxury brand Mulberry reported a 7% increase in revenue to £69.7m for the twenty-six weeks to 30 September, but operating losses jumped 79% to £10.4m.
The Somerset-headquartered group reported that for the 26 weeks ending September 30 group revenue was up 7% to £69.7m from £64.9m but losses before tax widened from £2.8m to £12.3m. However, international retail sales increased 34% to £23.5m.
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
The retailer added that profits were impacted by additional investments and costs to support its growth and decision to bring ownership of overseas stores in-house. Mulberry also invested in new lines and extended ranges, during the six month period, as well as collaborations with Axel Arigato, Stefan Cooke and Paul Smith.
The fashion giant added that the wider macro-economic environment and geo-political climate continues to present uncertainty. But bosses insisted that the company is well positioned to navigate this "tricky environment".
Chief executive Thierry Andretta said: "Against a challenging macro-economic backdrop, which is impacting the entire luxury landscape, we have continued to invest in our long-term future.
"Our strategy to transform our international businesses to a direct-to-consumer model has enabled us to control the entire customer experience in Sweden, Australia, New Zealand and Japan. Our investments in the period in our digital systems, stores and product will power future growth.
"As one of the most iconic British luxury brands, product innovation remains at the heart of Mulberry. Our recent product launches, the Islington, Pimlico and Lana have been well received by customers, which is testament to our heritage, fresh designs and modern craftsmanship. Looking ahead, we are well placed to capitalise on the important festive trading period and expect the usual second half weighting to trading."
