Mulberry blames lack of tourists for slowdown - leatherbiz: Leading ne Leatherbiz

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Mulberry blames lack of tourists for slowdown

26/03/2013
British leathergoods brand Mulberry has issued a profit warning for the tax year ending March 31, 2013 due to weaker-than-anticipated trading post-Christmas.

“Retail sales over the Christmas period were generally in line with expectations. However, trading across the retail portfolio during the last 10 weeks has been disappointing, including a reduction in tourist spending in the London stores,” said the company.

Retail like-for-like growth for the year is expected to be in the region of 6%. Wholesale sales for the year are now expected to be down about 15% compared to last year, due to channel rationalisation and lower than expected in-season ordering.

Mulberry expects revenues to be approximately £165 million and profit before tax around £26 million.
CEO Bruno Guillon said: "After three years of rapid growth, Mulberry has experienced a year of consolidation while 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."


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