Mulberry shares sink after profit warning

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Mulberry Group PLC said Monday that its profit for the full year will be “materially reduced” if sales from its concessions in House of Fraser department-stores continue to be affected by the tough U.K. market conditions.

The luxury fashion company

MUL, -22.67%

  said it expects to book an exceptional cost of 3 million pounds ($3.8 million) for the six months ended Sept. 30 to cover costs that may result from restructuring after House of Fraser was bought by Sports Direct International PLC

SPD, +0.60%

 on Aug. 10.

Mulberry operates 21 House of Fraser concessions, employing 88 people across the U.K.

Since the group reported in June 2018, Mulberry said the U.K. market has continued to remain challenging and sales in House of Fraser stores have been particularly affected.

Mulberry said business in the rest of the world is developing broadly in line with its expectations.

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