Mulberry, which prides itself on making 50 per cent of all bags in Somerset, said sluggish sales were propped up by tourists spending more in London.
Losses at Mulberry widened to £0.6million, up from £0.5million a year earlier, while sales came in flat at £74.5million.
Luxury losses: Mulberry, which prides itself on making 50% of all its bags in Somerset, said sluggish sales were propped up by tourists spending more in London
The group blamed the losses on higher marketing spend and IT systems costs.
Mulberry recently struck a deal with Japanese company Onward Global Fashion to open five stores there. It is also increasing the number of stores in Hong Kong and China.
Despite the slowdown, Thierry Andretta, chief executive at Mulberry, said the company would not compromise on price.
‘Our focus on full-price sales growth has delivered good results with new designs proving popular with customers,’ he said.
‘We continue to see strong demand from tourists in London and, while the UK remains uncertain, the group remains in a strong position to invest in developing the customer experience in key international markets and enhancing its UK design and manufacturing base.’