Fashion lifestyle firm Mulberry Group yesterday revealed an operating loss of £813,000 for the full year 2002 compared to a pre-tax profit of £670,000 the year before. Sales for the year increased by 8 per cent to £27.8 million, from £25.7 million in 2001.

Before tax, the Group made a loss of £1.7 million against a profit of £0.3 million in 2001.

The results for the full year include the trading losses and one-off costs of the closure of the stores in Tokyo and Brussels, the final costs of the brand review and the write-off and loss of revenue associated with the refurbishment of its flagship store in Bond Street.

In the US Mulberry's partners have halted a store rollout until the economic outlook is clearer. In the UK, however, the company says both retail and wholesale sales around the country are strong.