• FY pre-tax profit down 28% to GBP26m
  • Revenue down 2% to GBP165.1m
  • Wholesale falls 16% to GBP57.9m

Luxury business Mulberry Group saw its full-year pre-tax profit slump by more than a quarter thanks to shrinking margins and international investments.

Total revenue shrank by 2% in the year ended 31 March, but retail revenue was up 8% to GBP107.2m and like-for-like sales rose 6%.

However, wholesale revenues fell 16% thanks to destocking in Asia and account rationalisation in Europe, the UK company said.

The results come days after Mulberry confirmed that its creative director, Emma Hill, was to leave her post, amid reports of disagreements over company strategy and rumours that she will join US rival Coach.

Mulberry said it had recorded a 9% retail revenue increase in the 10 weeks to 8 June, with like-for-like sales maintaining their 6% growth.

But the company said it expected only “modest” wholesale growth in 2013/14, adding that it was aiming to open a further 15-20 new stores in the next year.

“After three years of rapid growth, we have had a year of consolidation during which we have laid the foundations for the transition of Mulberry from a UK success story into a global luxury brand,” said chief executive Bruno Guillon.

“Mulberry has a well-established business in the UK and a growing presence in Europe.

“With over 80% of our sales derived from these markets where the economic climate remains difficult, Mulberry’s challenge for the future is to accelerate our brand awareness in the USA and Asia.”