Mulberry ups profit forecast with retail sales on track and cost controls
The figures
A more successful second half of the year for Mulberry will help it bring in profit for the full-year ahead of expectations, citing careful cost controls as a factor.
Retail revenue for the year is expected to come in one per cent higher on the previous year and overall revenue will be in line with expectations of £148m – down on the previous year's £163m. The rise in retail would be "more than offset" by a decline in wholesale revenue.
It expects to take a one-off impairment charge of between £2.5m and £3m on five stores which have yet to be profitable..
Why it's interesting
Mulberry's high-end ambitions have created a string of profit warnings for the handbag maker, followed by senior departures. A new chief, Thierry Andretta, and creative director, Johnny Coca, have been brought in to get the British brand back on track.
What Mulberry said
"The encouraging Retail trends over the last five months reflect our reinvigorated product offer and focus upon our customers," said chairman Godfrey Davis.
In Short
Cost-cutting measures are starting to pay off as part of Mulberry's restructure and strong campaigns featuring Cara Delevigne have gone down well with customers- something that looks set to continue with Summer's Cressida Bonas lead look.