Mulberry’s loss weights fashion stocks

British luxury fashion champion Mulberry reported Thursday

a decline in yearly profit for the first time in four years, dragged for weaker Asian appetite for luxury goods. Other trade peers such as John Lewis or Laura Ashley also felt the pain of cold weather and reluctant consumers.

Pre-tax profit for the fiscal year ended 31 March declined to 26 million pounds from the 36 million pounds Mulberry earned last year. Revenue for the year fell 2 percent to 165 million pounds from 168 million as wholesale revenues declined by 16 percent on lower demand from Asia, explained the company in a communication issued Thursday.

"With over 80 percent 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," CEO Bruno Guillon said in a statement. For the first 10 weeks of fiscal year 2013/2014, Mulberry reported a 9 percent increase in total retail sales and a 6 percent increase in like-for-like sales.

Meanwhile in London, last week’s warmer weather contrasted with last year’s rainy and cool conditions, John Lewis said. As reported by ‘The Scotman’, John Lewis buying and brand director Peter Ruis pointed out that against the same week two years ago, sales were up 12 percent “when the fall of the calendar was more similar”.

Fashion sales at the beloved British department store chain fell 0.9 percent while women’s accessories and beauty were the strongest categories, as the warm weather led to a 160 percent surge in sunglasses sales. As highlighted by the retailer, womenswear performed well, driven by own-brand ranges.

Also having issues with the unstable climate, British fashion peer and furniture retailer Laura Ashley has blamed the unseasonable weather for a decline in first-quarter sales. The firm, which has about 210 stores in the UK and 276 franchised outlets around the world, said: “We are continuing to improve and enhance our fashion range and are optimistic that this will be reflected in our second-half performance.”