Mulberry's profit forecast up 16%

The luxury group Mulberry has raised profit forecasts for the third time in four months as the well heeled, both in the UK and overseas, snapped up its leather goods.

Mulberry, best known for its leather handbags priced at about £500-£900, yesterday said that sales and profit for the year ending 31 March were expected to exceed market expectations thanks to strong UK and export sales during January and February, which had continued into March.

Its house broker, Altium Securities, raised its 2010-11 pre-tax profit forecast by 16 per cent to £21.5m, and its forecast for the following year by 10 per cent to £27.5m.

"Mulberry's brand has become both relevant and desirable to the global consumer. But it barely has a toe in some of the world's largest luxury goods markets," Philip Dorgan, an analyst at Altium said. The shares closed up 16 per cent at 1,409.5p.