Shares in Mulberry plunged 30 per cent today after the British brand announced that it would take a £3m hit from the administration of House of Fraser earlier this month.
“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.
Trading in the rest of the world was otherwise going much as expected, it added.
“The group is in a strong cash position and continues to follow its strategy to develop Mulberry into a global luxury brand. Over the past two years the group has enhanced the international network, particularly in Asia, and will continue to invest in the omni-channel experience and marketing across its international markets.”
Mulberry operates 21 concessions in House of Fraser, the retail chain that has been bought from administrators by Sports Direct.