BRITISH luxury goods retailer Mulberry today reported a 28 per cent drop in pre-tax profits, due to investment in international stores and a challenging European market.
The company said that pre-tax profits had fallen to £26m from £36m for the year ended 31 March 2013 and revenue was down two per cent to £165.1m.
Like-for-like retail revenue was up six per cent, while wholesale revenue was down 16 per cent due to weakening demand in Asia.
“Mulberry has a well-established business in the UK and a growing presence in Europe,” said chief executive Bruno Guillon. “With over 80 per cent of our sales derived from these markets where the economic climate remains difficult, Mulberry's challenge for the future is to accelerate our brand awareness in the USA and Asia.
“Greater visibility in Asia will allow us to benefit from tourist traffic in Europe and the USA at the same time as growing our business locally.”