Mulberry returns to roots after sales drop
Handbag maker Mulberry revealed annual profits tumbled by 74% after its ill-fated move into the exclusive luxury market, but said its recent switch to more affordable ranges was driving a sales rebound.
Mulberry's UK like-for-like retail sales surged 17% in the first 10 weeks of its new financial year under a turnaround to revive its fortunes with lower-priced products and the launch of new ranges such as the Tessie and Alice bags, and a line developed in conjunction with model Cara Delevingne.
Under the leadership of new chief executive Thierry Andretta, who joined in April, Mulberry is reconnecting with its traditional customer market by focusing on ranges costing between £500 and £1,000 - turning its back on the disastrous switch upmarket that led to a string of profit warnings and claimed the scalp of former chief executive Bruno Guillon.
Somerset-based Mulberry's full-year results laid bare the impact of its calamitous previous strategy, with underlying pre-tax profits collapsing to £4.5m in the year to March 31, down from £17.4m a year earlier.