Mulberry to lose £3m from House of Fraser collapse
House of Fraser concession operator Mulberry has revealed it will take a profit hit of around £3 million due to the collapse of the department store chain.
With 21 conccessions in House of Fraser stores, Mulberry said it now expects to to provide £3 million for exceptional costs in its results for the six months to 30 September 2018.
In a statement, the luxury brand said that since it last reported in June, the UK market has remained challenging and sales in House of Fraser stores have been particularly affected.
It added: “If these sales trends in the UK continue into the key trading period of the second half of the financial year, the group’s profit for the whole year will be materially reduced.
“The group is in a strong cash position and continues to follow its strategy to develop Mulberry into a global luxury brand.”
During the last two years, Mulberry has been working to enhance its international network, particularly in Asia, and will continue to invest in the omnichannel experience and marketing across its international markets.
