The group warned it expected pre-tax profits for its financial year, which ends on March 31, to be “substantially below current market expectations” following disappointing sales in Britain over the festive period, plus cancellations of wholesales orders in South Korea.
The company, which has been moving upmarket under chief executive Bruno Guillon, also said that in “recent days”, it has become clear wholesale order cancellations from South Korea are likely to be “significant”.
As a result, Mulberry now expects wholesale sales for the 12 months to March 31 be down around 10pc lower compared to the previous year.
Mr Guillon said: “Due to tough trading conditions over the Christmas period which saw significant discounting across the market, Mulberry has experienced lower than expected UK retail sales which, together with wholesale order cancellations from Korea, will adversely impact our profit this year.
“Despite this, the company continues to be cash generative and to invest in the ongoing process of transforming Mulberry from a domestic to a global luxury brand, the progress of which is demonstrated by the continued growth in international retail sales.”
The profits warning coming after a challenging 18 months for the company, during which it has been criticised for raising prices and apparently moving away from its reputation for "affordable luxury".
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