Mixed bag: Mulberry profits soar but shares slump

HANDBAG maker Mulberrry carried off a bumper increase in profits but a warning over slowing sales wiped nearly a quarter off its market value.

Demand for its designs in Asia means the firm will build a further factory in the UK, less than a year after it completed the extension of its existing plant. Profits jumped 54 per cent to £36 million for the year to 31 March on the back of a 38 per cent rise in sales to £168.5m.

But shares slumped after the firm warned over its “near-term trading conditions” and revealed that like-for-like sales had dipped in the spring, although they have since recovered.

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The firm’s best-known product of recent times has been the Alexa bag – inspired by Channel 4 presenter Alexa Chung – while, in recent weeks, Mulberry has launched the “Del Rey” bag, which is inspired by American singer Lana Del Rey.

Shares closed down 22.5 per cent or 453p at 1,560p.

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