British handbag maker Mulberry slumped to a first half loss as it counted the cost of an ill-fated push upmarket but said a return to its lower priced roots had seen sales rise more recently.
The firm's aspirations for a more exclusive luxury position led to three profit warnings this year.
Today it posted a loss of £1.1m for the six months to the end of September, compared to a pretax profit of £7.2m a year ago.
Sales fell 17% in the half with margins also down as it pushed more £500-800 bags in a bid to win back customers put off by the higher priced products championed by ousted boss Bruno Guillon.
Mulberry veteran Godfrey Davis took over from Guillon in March.
He said the take-up had been good with total retail sales up 8% in the nine weeks to November 29 and 2% on a like for like basis, boosted by online growth following new services such as click and collect.
"After a difficult couple of years, the steps that we have taken to return Mulberry to growth are beginning to bear fruit," said Davis.
The company has also had to grapple with tough industry conditions such as lower tourist numbers and weaker demand in key markets like China.
Mulberry makes over 60% of its sales in Britain.
