Is Mulberry The Latest In Luxury Plunge Trend?
Shares of the British heritage brand are falling
Shares of British heritage brand Mulberry Group Plc have fallen as much as 24 percent, effectively wiping about £128 million off the company's market value.
Chief executive officer Bruno Guillon said in a statement, “Due to tough trading conditions over the Christmas period which saw significant discounting across the market, Mulberry has experienced lower than expected UK retail sales which, together with wholesale order cancellations from Korea, will adversely impact our profit this year.”
Mulberry usually does not go on sale until Boxing Day but lost out to rivals in 2013 who had begun to slash prices in the run up to Christmas. Overstocked Korean retailers will also mean the brand's expected full-year wholesale sales to be 10 percent down on a year ago. Wholesale makes up 35 percent of group sales for Mulberry, while Korea makes up 20 percent of wholesale.
This a blow to Guillon who after joining Mulberry as CEO from Hermès in the Spring of 2012, planned to take the brand from its traditional position as 'affordable luxury’ to a significantly higher tier with plans of increasing the brand’s profile overseas and an aggressive store opening programme.