Luxury brand Mulberry has said that pre-tax profit for the year is likely to be significantly below expectations following a “challenging” year.

In the 12 months, the retail business fell by 9%, with a  decline in the UK offset by growth in International markets.

In a statement, Mulberry said: “As reported on 12 June 2014, the company anticipated a challenging year. The first half was expected to be particularly difficult, with it taking some time for the measures implemented after the April management change to take effect. Actual trading conditions have been more difficult than expected, in part due to the continuing headwinds affecting the luxury sector. Whilst sales trends have improved as the period progressed, indicating that the right steps are being taken to restore the business to growth, H1 revenues were down 17% to £64.7 million (2013: £78.1 million) and profit before tax for the full year to March 2015 is expected to be significantly below current expectations.”