Upscale fashion retailer Mulberry has revealed a drop off in full-year pre-tax profits but said that like-for-likes have soared 21 per cent in the past 10 weeks.

In the year to March 31 pre-tax profits fell from £5.2m to £4.2m, ahead of expectations. Sales during the period grew 14 per cent to £58.6m.

The retailer said it was the sixth consecutive year of sales growth, “delivered during a period of significant economic challenge and uncertainty”.

In the first 10 weeks of the current financial year UK retail sales rocketed 26 per cent on like-for-likes up 21 per cent. Like-for-like sales during the 10 weeks grew 11 per cent in full-price stores and 45 per cent in off-price stores.

During the full-year period, UK retail sales climbed 15 per cent– a like-for-like uplift of 2 per cent. Wholesale sales rose 15 per cent. Online sales rocketed 38 per cent, helped by the introduction of dollar and euro denominated sites.

The retailer said that its balance sheet is “strong” with no debt and as of the year-end it had cash of £3.7m, versus £10.2m in the pervious year.

Mulberry chairman and chief executive Godfrey Davis said: “These results reflect the continued investment in the brand. With our strong balance sheet we are well placed to continue to build Mulberry as a global brand. The current financial year has started well.”

The retailer is investing in the UK and overseas, developing new stores and product, strengthening its management team and spending more on marketing.

In the UK, the retailer said it had a “healthy” last two weeks in December and continued through to the year-end. It has benefited from tourists visiting London to take advantage of the weak pound.