BUSINESS NEWS: MULBERRY SET TO RALLY AFTER SALES DROP
Mulberry is emerging from the shadows after a serious drop in last year’s sales, says the luxury British handbag maker. A new management team and careful cost control measures are part of a long term strategy to revive the brand’s ailing business results.
Although the previous year’s sales fell from 163 million to 148 million pounds, profit was slightly ahead of expectations, as reported by Bloomberg. Barclays’ increase in Mulberry’s annual adjusted pretax profit, from 4 million to 4.3 million pounds, further bolstered results.
“The encouraging retail trends over the last five months reflect our reinvigorated product offer and focus upon our customers,” said Chairman Godfrey Davis in a statement.
The brand’s new CEO, Thierry Andretta, is a welcome replacement for Bruno Guillon, the former Hermès International SCA executive who resigned last year after a plan to push Mulberry further upmarket backfired, setting earnings in free fall.
Retail sales have improved since November with the introduction of the spring-summer collection, buffering the impact of declining wholesale business, the company said.