Mulberry suspends dividend, expects 'small' loss in H2
Mulberry said on Tuesday that it was suspending its dividend and now expects to make a "small" loss in the second half due to the coronavirus pandemic.
The company, known for its handbags, said recent trading in its stores, particularly in the UK, has been "severely" impacted by the crisis. On 21 March, it took the decision to close all of its UK stores until further notice.
Mulberry said it now expects to make a small loss in the second half due to the virus outbreak, having previously said that it would be profitable and cash generative. It also said it was not possible to provide meaningful guidance on future performance "given the rapidly evolving nature of the situation".
In addition, the company has decided to suspend all shareholder distributions until further notice.
Chief executive officer Thierry Andretta said: "Whilst it is uncertain how long the virus will directly impact our markets and our businesses, we remain confident in the strength of our brand, and in our strategy over the long term."
Mulberry said it was working to protect cash and to secure future value for its stakeholders by "proactively managing" its capital and identifying opportunities for cost savings.