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Sales Rise but Net Profits Drop at Mulberry

Company cites costs associated with new store openings and increased marketing spending.

LONDON — Mulberry, the British accessories and ready-to-wear brand, said Thursday that net profits fell 13 percent to 3.4 million pounds, or $6.9 million, on a 13.5 percent increase in sales to 51.1 million pounds, or $102.7 million, in the year ended March 31.

In the previous year, profits were 3.9 million pounds, or $7.9 million, on sales of 45 million pounds, or $90.4 million. All dollar figures have been converted from the pound at average exchange rates for the period.

The company said the drop in net profits was a result of the costs associated with new store openings and increased marketing spending.

Pretax profits for the year dropped 16 percent to 5.2 million pounds, or $10.3 million.