Poor sales and discounts sees shares dip at luxury fashion icon Mulberry
MULBERRY's share price fell the most in more than a year after saying earnings will be "substantially below" estimates because of weak holiday sales in the UK and order cancellations in South Korea.
The shares slid as much as 24pc to £6.86 (€8.33) yesterday in London, their steepest drop since October 23, 2012, wiping about £128m (€155m) off the company's market value, after the company said wholesale revenue in the year ending March 31, 2014 will be down by about about 10pc.
Christmas discounting in the UK led to a deteriorating business climate there, while the effect of cancelled wholesale orders from Korea has been "significantly more challenging than anticipated," the luxury handbag maker said. Chief executive Bruno Guillon is seeking to refocus Mulberry as a luxury brand by drawing on its British heritage and shifting prices higher.
His plans, which include opening stores overseas, will lead to short-term disruption in the wholesale channel, according to analysts at Nomura.