BRITISH GROUP Mulberry has become the latest luxury fashion brand to warn on profit, after sales of its leather goods and accessories were hit by a slowdown in Asia.
Mulberry shares lost a quarter of their value after it said yesterday that full-year profit would be below the £36 million made in 2011-12, compared with a forecast for about £43 million.
Larger British peer Burberry sent shockwaves through the industry last month when it said there was a broad-based slowdown in spending – particularly in China, the driving force behind a three-year boom in demand for luxury goods.
Mulberry, which sells Bayswater hand bags for £1,400 , said it had seen lower than expected wholesale revenue and disappointing international retail sales.
Wholesale shipments fell 4 per cent to £30 million in the six months to September 30th.
Retail revenue rose 13 per cent to £46.5 million and was up 7 per cent on a like-for-like basis.
Mulberry said its decision to sell fewer discounted goods meant so-called off-price sales fell. International retail sales rose 41 per cent, below hopes. – (Reuters)
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