British luxury-goods company Mulberry Group PLC MUL, +1.82% on Wednesday posted a widened pretax loss for its fiscal first half as falling sales in its home market, as well as investments, took a toll on its bottom line.
The company posted a pretax loss of 10.9 million pounds ($14.0 million) for the period ended Sept. 28, widening from a GBP8.2 million loss during the same period a year earlier.
Mulberry, which is best known for its luxury leather goods and handbags, said investments to help it grow internationally and a challenging market environment in the U.K. contributed to the loss.
Mulberry’s net loss widened to GBP9.3 million, or 16.4 pence a share.
Revenue climbed 1% to GBP68.9 million, Mulberry said. Sales in its home market of the U.K., where it makes the bulk of its revenue, fell 4%. Mulberry’s international sales grew 12% during the period, driven by double-digit growth in Asia.
Mulberry expects to trade profitably and generate cash during the second half of the fiscal year. Due to the company’s shift toward a direct-to-consumer model, the phasing of its profits has become increasingly weighted toward the second half of the year, the company said.