Mulberry gets a handbagging as investors dump shares
Friday 15 June 2012
Despite fashion's love affair with Alexa and Del Rey celebrity-inspired handbags, Mulberry lost some key investor fans yesterday as shares fell 22 per cent after its current trading disappointed the City.
The company revealed a strong, full-year profit up 54 per cent to £36m and sales up 38 per cent to £168.5m for the year.
However, poor April sales and a massive, 24 per cent fall in outlet sales led the market to sell out, with shares closing down at 1,560p.
Matthew McEachran, a retail analyst at Singer Capital Markets, said: "They are a good set of results, but current trading has been disappointing and there is low transparency on gross margins. When stock is on a high rating there is no room for error. But the business has super, long-term prospects."
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