Mulberry Group (AIM:MUL) boss Thierry Andretta added his voice to the calls for the government to change its stance on VAT-free shopping after interim losses soared at the posh handbag maker.
“I continue to believe that offering VAT-free shopping in the UK would be one of the most effective ways to encourage business growth in this country,” he said in a statement.
“The fact this has not been reinstated is creating challenges for all sectors; impacting not only the luxury players, but also hospitality, travel and tourism.
“As we look ahead to the New Year, I urge policymakers to collaborate with all industries campaigning on this issue and reconsider implementing this to support businesses across the UK."
Mulberry shares dropped as losses jumped four-fold to £12.3 million in the six months to end September 2023 even though revenues improved 7% to £69.7 million.
International sales improved by 35% with the UK up by 6% and US sales jumping 38%; China though was weak.
Andretta warned the uncertain economic backdrop was starting to take its toll on consumer demand, though he was pleased by the reception to two new product lines, Pimlico and Lana.
Shares dropped 6% to 155p.