Mulberry (LON: MUL) has reported a £14.2m loss in the year ending 28 March.
Due to the impact of the pandemic and a “challenging UK market”, the group reported a 10% fall in revenue to £149.3m – down from £166.3m the year previously.
Mulberry said that was on track to reach profit before the UK’s lockdown forced the group to close stores.
International retail sales increased by 4% from £31.3m to £32.4m. International sales accounted for 26% of total retail revenue.
The fashion retailer said that it will not pay a full-year dividend “in order to maintain a robust liquidity position given the uncertainty and duration of COVID-19.”
The group remained positive and said that trading since the start of the financial year is ahead of expectations.
Thierry Andretta, the group’s chief executive, said: “The Group has made strategic and operational progress during the most challenging market conditions in the history of the brand. Prior to the impact of the Coronavirus pandemic we were performing well and on-track to record a pre-tax profit in the second half of the year.
“This was due to progressing our fourpillar growth strategy: our omni-channel distribution, our international development in Asia, a drive for constant innovation, and sustainability. The Group has been able to withstand some of the pressures that we, and indeed the entire retail industry, have been faced with.
“Post year end, the Group has continued to benefit from its long-term strategic focus with initial sales ahead of our early expectations. However, we cannot escape the reality that British luxury and UK cities face a very uncertain future, hampered by necessary but dramatic social distancing measures and alarmingly low levels of footfall, as well as the pressures of high rents and business rates and the upcoming changes to tax free shopping.”
Mulberry shares (LON: MUL) opened 3% lower and are trading at 161,00 (0818GMT).