Somerset-based fashion brand Mulberry has hailed a return to growth in its retail division as it continues to recover from a disastrous attempt to reposition itself at the top end of the luxury market.
The global firm, best known for its designer bags, said trading in its retail division had improved following the introduction of its spring/summer 2015 collection to its stores last November.
The collection was the first former chief executive Bruno Guillon quit just over a year ago. He was blamed for pricing out many loyal Mulberry buyers by introducing new bag ranges with price tags well above £1,000 as he looked to take the brand into the high-end international market.
As a result Mulberry, which has its headquarters and a factory at Chilcompton, was forced to release a series of damaging profit warnings and plunged to a £1.1m loss in the six months to September 30 against a £7.2m pre-tax profit in the same period in 2013. 
The new range, which includes bags priced between £500 and £800, had reinvigorated the group’s product offer as it was more focused on its customers, chairman Godfrey Davis said.
However, while retail trading edged ahead by 1% for the full year and will be in line with Mulberry’s expectations at £148m – against £163m last time – this has been more than offset by a decline in its wholesale business.
There was better news on its annual profit before one-off items, which would be slightly ahead of market expectations as a result of “careful cost control,” said Mr Davis.
New chief executive, the fashion industry veteran Thierry Andretta, joined this week from Buccellati, the Italian high luxury jewellery brand. He previously held senior positions at Gucci, Moschino, Céline and Louis Vuitton group LVMH.
He will work closely with Mulberry’s new creative director, Johnny Coca, who will join in July from Céline.
