THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Mulberry warns on profit

Mulberry, the luxury handbag and leather goods retailer, has warned that it expects revenue growth and full year profits to be below market expectations, following a fall in wholesale shipments in the six months to end September.

GENERAL MERCHANDISE

Mulberry warns on profit

In a trading statement Mulberry said that wholesale shipments dropped 4% to £30 million in the half-year due to a rationalisation in the group’s distribution network overseas and a slowdown of demand from Asia. The group also faced tough half-year comparatives in the period which were boosted by a restocking of the wholesale channel last year.

Mulberry’s total revenue climbed 6% to £76.5 million in the half-year while retail revenue rose 13% to £46.5million and by 7% on a like-for-like basis.

UK retail sales were up 10% with UK full price sales performing in line with expectations. UK off-price sales remained weaker, reflecting a strategic decision not to make product specifically for the off-price business.

The group’s international sales, which are currently a small part of the business, were up 41%, but failed to meet expectations for the first half of the year. However, Mulberry said it remained confident in its international expansion strategy, having recently opened stores in San Francisco, Washington D.C., Berlin and Frankfurt Airport.

The group said its newly opened stores were performing satisfactorily and that it was on track to open a target of 15-20 stores during 2012/13.

Commenting on the results, Bruno Guillon, Mulberry chief executive officer, said: "The steps we have taken to improve the quality of Mulberry's distribution network in both the retail and wholesale channels will result in the short term slowing of sales growth. However, we firmly believe these steps are in the long term interests of building Mulberry into a global luxury brand.

"The Mulberry brand continues to gain recognition globally and we remain very confident in the outlook for the business. 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."
 

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing