20th Aug 2018 08:45
LONDON (Alliance News) - Shares in Mulberry Group PLC plunged on Monday after the company issued a profit warning due to the collapse of UK department store chain House of Fraser.
Shares in the luxury handbag maker were trading 25% lower at 427.60 pence each, one of the top fallers in London early Monday morning.
Mulberry said that its profit for the year to March-end could be lower due to challenging market conditions in the UK with sales in House of Fraser "particularly affected".
"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," the company explained.
Mulberry, which operates in 21 House of Fraser's stores employing 88 workers, said it expects to incur GBP3 million in exceptional costs for the six months to September, related to the fall of the struggling store and its subsequent acquisition by Sports Direct International PLC.
Earlier this month, the 169-year-old department store was bought out of administration by Mike Ashley's Sports Direct for GBP90 million.
Outside of the UK, Mulberry said that trading continues to be "broadly in line with management's expectations".
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