Mulberry packs a mighty punch in its handbags

Luxury goods firm Mulberry put the rest of the retail sector in the shade yesterday by revealing faster-than-expected growth so far this year.

It is the second time in 2011 that the British group has upgraded sales and profits guidance as it benefits from strong demand in the UK and overseas, despite an uncertain start to the year for the global economy.

Buoyed by a successful show at last month's London Fashion Week, the company added that order levels for its autumn collection were encouraging.

Mulberry handbags can sell for as much as 3,000 and include its Alexa handbag - named after television presenter Alexa Chung. Other brands include Bayswater, Daria and Mitzy.

Booming demand for its products has made Mulberry one of the fastest growing firms on the London Stock Exchange.

Philip Dorgan, a retail analyst at Altium Securities, said: "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."

He increased his pre-tax profit forecast for the year to 31 March by 16 per cent to 18.5 million.