Mulberry sees profits wither by 17%
A PROFIT warning from Mulberry saw shares in the luxury goods group, best known for its leather handbags, fall heavily yesterday.
Although the firm said a range of bags developed with model Cara Delevingne, pictured, had received a positive reaction, that could not prevent revenues falling 17 per cent to £64.7 million in the six months to the end of September.
With its UK business being hit by a fall in spending among well-heeled tourists, Mulberry executive chairman Godfrey Davis warned that its full-year profits will be “significantly” below City hopes. Shares fell 75.5p, or 10 per cent, to 675p.
Rival Burberry also warned that trading is likely to become more difficult, despite enjoying a 14 per cent rise in first-half sales to £1.1 billion. Negative foreign currency effects have reduced, but it said: “This benefit will be partly offset by the more difficult external environment.”