Shares in West luxury leather goods brand Mulberry fell sharply today after it announced weaker-than-expected trading in the post-Christmas period.
The Chilcompton-based group, whose bags are regularly photographed on the arms of A-list celebrities, said the fall-off in sales meant revenues and pre-profit for the year ending March 31 were now expected to be below market expectations.
In a London Stock Exchange statement today, the group said while retail sales over the Christmas period were generally in line with expectations, trading across its retail portfolio during the past 10 weeks has been “disappointing”.
This was partly the fault of a reduction in tourist spending in its London stores, it said.
Wholesale sales for the year are now expected to be down approximately 15% compared to last year due to a previously-announced restructuring and lower-than-expected in-season ordering.
However, Mulberry said its order book for Autumn/Winter 2013 was building satisfactorily and retail like-for-like growth for the year is expected to be around 6%.
Mulberry expects annual pre-tax profits to be around £26m on revenues in the region of £165m.
Chief executive officer Bruno Guillon said: “After three years of rapid growth, Mulberry has experienced a year of consolidation whilst we build the foundations for future growth.
“We are focused upon optimising the distribution network and adapting our tactical marketing strategy to drive international brand awareness.
“We continue to reinforce Mulberry’s luxury positioning through an enhanced focus on creativity, craftsmanship and quality.”
Mulberry shares had fallen by 200p, or 16.2%, by mid-morning to £10.35 – less than half their level of May last year.
