Mulberry slashed the final dividend after reporting a sharp drop in annual profit following a “challenging” first half of the year, although revenue edged higher.
The luxury goods company, famous for its handbags, said revenue in the 52 weeks to 1 April 2023 rose 4% to £159.1mln from £152.4mln the year prior, “despite macro-economic uncertainty”.
But reported pre-tax profit for the period fell to £13.2mln from £21.3mln while the final dividend was lowered to 1p per share from 3p.
UK retail sales eased slightly to £87.7mln from £88.5mln reflecting an improved performance in the second half of the year.
The international business was the star performer with sales up 12% to £46.5mln while Asia Pacific sales edged up 3% to £28.9mln despite a number of Covid-19 lockdowns in the region, particularly in China and South Korea.
Mulberry said revenue for the first 12 weeks of the new financial year is 6% ahead of last year with retail revenue up 15% and with the newly acquired Sweden and Australia stores continuing to perform well.
“We are confident in our strategy and continue to invest, including in further store openings across the network planned later this year,” said chief executive Thierry Andretta.