Mulberry warns on profits following House of Fraser collapse

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Mulberry warns on profits following House of Fraser collapse


English fashion model and actress Cara Delevingne in an ad campaign for Mulberry
English fashion model and actress Cara Delevingne in an ad campaign for Mulberry

Mulberry has warned that profits could take a £3m (€3.3m) hit following the collapse of House of Fraser.

The upmarket handbag maker said that the group’s profit for the year “will be materially reduced” as a result of flagging UK sales, particularly in House of Fraser, where it operates 21 concessions.

“Since the group reported in June 2018, the UK market has continued to remain challenging and sales in House of Fraser stores have been particularly affected.

“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,” Mulberry said.

House of Fraser collapsed into administration a week and a half ago, before being snapped up by Mike Ashley’s Sports Direct.

However, it is unclear how many stores Mr Ashley will keep or what terms he will offer to concession partners.

Mulberry said that following a review of potential costs that may result from Mr Ashley’s restructuring, the group is provisioning £3m in exceptional costs for the first half of the year.

Press Association

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