Mulberry Group PLC (LON:MUL) said it estimates losses to be reduced in the current financial period after trading topped early expectations.
However, in the base case scenario, sales are expected to fall by 35% and 61% in retail and wholesale & franchise respectively in the year to next March.
READ: Mulberry considers sacking 25% of staff as social distancing measures hit sales
Revenue in the 26 weeks to September 26 dropped 29% while digital sales soared 69%, with growth in Asia offsetting some of the impact of shutdowns in the UK, Europe and North America.
Net cash at September 25 was £8mln while existing bank facilities were extended to March 2022 with renegotiated banking covenants.
The fashion designer cut 25% of its staff and did not propose a final dividend among measures to save cash.
In the year to March 28, revenue slipped 10% to £149mln while the AIM-listed firm slumped to a £14mln loss before tax from the previous year’s £1mln profit.
“The dramatic decline in footfall in high-end shopping districts, hit by the collapse in international tourism is still proving a major headache,” said Susannah Streeter, analyst at Hargreaves Lansdown.
“Mulberry’s eco-friendly credentials were given a shine by releasing its first 100% sustainable leather bag, which sold out online in 24 hours. The company will need to keep up that momentum as we head into another tough season for fashion retail.”
Shares shed 9% to 151p on Monday morning.