Mulberry rethinks pricing strategy
British leathergoods brand Mulberry has warned it might take some time for a restructuring strategy to take effect after reporting a decline in profit to £14 million in the year to March 31 from £26 million a year ago.
The company fell afoul of a strategy implemented by former CEO Bruno Guillon to raise prices to start at around £1000; its new lines will now start at around £500.
Godfrey Davis, Mulberry’s chairman, said: We have listened to our customers and are introducing attractive new products in the key £500 to £800 price range. As a first step we introduced the new Tessie collection two weeks ago which is proving popular.
“We are proud of having created 320 new manufacturing jobs by opening our second factory in Somerset during June 2013. We have doubled our UK production capacity and more than 50% of our handbags are now made in the UK using traditional skills and craftsmanship.
“While the business faces a challenging year, I am confident that we can build on Mulberry's solid foundations and unique brand positioning in the luxury market to restore growth in the medium term."
The company is seeking a new creative director after the departure of Emma Hill last September, and a new CEO after Mr Guillon stepped down in March.
