AIM-listed accessories firm Mulberry (LON:MUL) saw its share price fall by 11.45% to 147p (as 15:10 BST) after reporting a 10% decline in revenues for the year ended 28th March. The company reported a £47.9 million loss before tax in part due to the impact of the COVID pandemic post period end. The board has recommended that no dividend be paid in order to maintain liquidity through the current situation.
CEO Thierry Andretta commented: “The Group has made strategic and operational progress during the most challenging market conditions in the history of the brand. Prior to the impact of the Coronavirus pandemic we were performing well and on-track to record a pre-tax profit in the second half of the year. This was due to progressing our four-pillar growth strategy: our omni-channel distribution, our international development in Asia, a drive for constant innovation, and sustainability. The Group has been able to withstand some of the pressures that we, and indeed the entire retail industry, have been faced with.
“I am extremely proud of my colleagues, who have coped admirably with these challenges. I am pleased to say the Group reacted swiftly to the impact of COVID-19, managing capital and reducing costs to ensure that we were able to maintain a robust liquidity position.
“Post year end, the Group has continued to benefit from its long-term strategic focus with initial sales ahead of our early expectations. However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping.
“We cannot control external events, but we have a clear strategy and remain confident in the strength of the Mulberry brand. I would like to take this opportunity to once more thank my colleagues for their hard work, resilience and dedication during these difficult times“.