UK luxury handbag maker Mulberry said full-year pretax profit would be significantly below expectations after a slump in first-half trading added to the disruption of a product overhaul.
Mulberry had warned in June of a tough year ahead as it shifts to a lower price strategy following an ill-fated attempt to move upmarket that hit sales and led to chief executive Bruno Guillon’s exit in March. On Tuesday, in the latest in a string of profit warnings, the firm said tougher than expected trading conditions had added to its woes, with falling levels of tourist shoppers hurting its core UK business.
Revenues for the six months to 30 Sept. fell 17 percent to EUR64.7 million (USD104 million), the firm said, with retail sales down 9 percent and wholesale sales down 31 percent.
(Source: CNBC)