Mulberry shares plummet on profit warning

  • Shares in British luxury fashion group Mulberry shed a quarter of their value on Tuesday following an announcement that full-year profit would be below the $58 million made in 2011-12, compared with an estimate of about $68.5 million.

    Mulberry, known for its $2,200 Bayswater handbags, issued the profit warning on the back of lower-than-expected wholesale revenue and disappointing international retail sales.

    Wholesale shipments dropped 4 percent to just under $48 million in the six months to September 30 due to weaker demand in Asia as well as a decision to limit the amount of stock going into lower quality wholesale overseas accounts.

    Meanwhile, retail revenue rose 13 percent to $74 million and was up 7 percent compared to the same period last year.

    Mulberry shares were down 300 pence at 1,020 pence during early trade.

    The group’s shares have depreciated by 41 percent over the past six months.