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| Mulberry sees profits dive after disastrous year | Mulberry sees profits dive after disastrous year |
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| Mulberry, the British luxury goods maker famous for its celebrity-named bags, has vowed to win back disenchanted customers with cheaper products. | Mulberry, the British luxury goods maker famous for its celebrity-named bags, has vowed to win back disenchanted customers with cheaper products. |
| The struggling leather brand revealed a 46 per cent tumble in profit to £14 million for the year to April. Sales for the 10 weeks to June 7, in stores open longer than a year, tumbled 15 per cent. | The struggling leather brand revealed a 46 per cent tumble in profit to £14 million for the year to April. Sales for the 10 weeks to June 7, in stores open longer than a year, tumbled 15 per cent. |
| Godfrey Davis, the executive chairman who stepped in to run the brand when chief executive Bruno Guillon left in March after three profit warnings, said its launch of a new line of cheaper bags, called Tessie, two weeks ago had made an “incredibly good start”. | Godfrey Davis, the executive chairman who stepped in to run the brand when chief executive Bruno Guillon left in March after three profit warnings, said its launch of a new line of cheaper bags, called Tessie, two weeks ago had made an “incredibly good start”. |
| Mulberry was heavily criticised for going too upmarket under Guillon and pricing out its core British customer in pursuit of wealthy overseas shoppers. | Mulberry was heavily criticised for going too upmarket under Guillon and pricing out its core British customer in pursuit of wealthy overseas shoppers. |
| Davis said: "We are a luxury brand but we try to be fair value for money.” He said that Mulberry had lacked “new and interesting products in the key price range of £500 to £800”. But he insisted that “this is fine tuning, not a U-turn”. | Davis said: "We are a luxury brand but we try to be fair value for money.” He said that Mulberry had lacked “new and interesting products in the key price range of £500 to £800”. But he insisted that “this is fine tuning, not a U-turn”. |
| He said “some of our customers got the wrong impression” and he now hopes the Tessie line will win back alienated fans. | He said “some of our customers got the wrong impression” and he now hopes the Tessie line will win back alienated fans. |
| The group is still searching for a creative director after Emma Hill quit last year. She was credited with introducing its bestselling “It bags” such as those named after presenter Alexa Chung and singer Lana Del Rey. | The group is still searching for a creative director after Emma Hill quit last year. She was credited with introducing its bestselling “It bags” such as those named after presenter Alexa Chung and singer Lana Del Rey. |
| Davis said the group wants a creative director before it gets a new chief executive and he plans to run the brand for a while to “restore the business to growth.” | Davis said the group wants a creative director before it gets a new chief executive and he plans to run the brand for a while to “restore the business to growth.” |
| He said the £500 to £800 bags will account for 40 per cent of its entire range — up from less than 24 per cent a year ago — adding that last year, bags selling for more than £1000 made up more than 54 per cent of the collection. | He said the £500 to £800 bags will account for 40 per cent of its entire range — up from less than 24 per cent a year ago — adding that last year, bags selling for more than £1000 made up more than 54 per cent of the collection. |
| They now make up less than 30 per cent. A surge in sales for brands selling bags at around £300 caused analysts to be concerned that Mulberry is still too expensive but Davis added: “We think our price positioning is good.” | They now make up less than 30 per cent. A surge in sales for brands selling bags at around £300 caused analysts to be concerned that Mulberry is still too expensive but Davis added: “We think our price positioning is good.” |