Mulberry’s move away from an ill-fated upmarket push is paying off, with the handbag maker nudging up profit hopes.
The luxury group said improved retail sales and “careful cost control” meant profit for the year to 31 March would be slightly ahead of market expectations.
The update comes almost a year after Bruno Guillon, the embattled chief executive, left the company. Mulberry has been losing sales and had to issue profit warnings after Mr Guillon’s attempt to take it further upmarket sent prices soaring and alienated some UK customers.
It said yesterday that retail revenue for the year is expected to come in 1 per cent higher on the previous year and overall group revenue will be in line with expectations of £148m – down on the previous year’s £163m.
Retail sales were boosted by its spring and summer 2015 collection – with more products in the £500 to £800 bracket.
Last month, the company announced that Mr Guillon would be replaced by fashion veteran Thierry Andretta, who has held senior roles at Gucci and the French luxury goods giant LVMH. The new creative director Johnny Coca joins in July from the LVMH-owned brand Céline. Mr Coca replaces Emma Hill, who is credited with turning Mulberry into a global brand but who left in 2013.Reuse content