Mulberry Issues Profit Warning
Mulberry has recently issued a profit warning after the designer handbag giant sees a fall in wholesale revenue, in the 6 months leading up to September 30th wholesale shipments to third party was down 4% to £30m they believe the cause of this is due to a changing environment in Asia.
In a statement, Mulberry said "it had made the decision to rationalise some international wholesale accounts in order to improve the distribution network."
Mulberry has stated that they now expect revenue growth for the year until March 31st
Mulberry is also seeing a slight change in strategy due to this decline, they have looked at sales and in the UK retail sales have risen by 10% and Mulberry's full priced items have performed "in line with expectations" but again the off-price sales have remained weak, so they have decided to stop making products specifically for the off-price range.
Mulberry also plans to open a further 15-20 stores globally during 2012/13 and has stated that their current international stores have been performing "satisfactorily".
He added: “We continue to focus on creativity, craftsmanship and quality and in this context will start the construction of our second UK factory within the next few weeks.”