Mulberry Rethinks Strategy in Light of Stalled Profits
Posted Thursday April 17, 2014 9:28 AM GMT
It’s been a tough year for Mulberry given the loss of both creative director Emma Hill and CEO Bruno Guillon, and it’s all reflected in their bottom line.
According to WWD, the English luxury label has warned investors that the pre-tax profits for the year ending March 31st aren’t in line with previous expectations and they’re planning a number of adjustments as a result.
Among the changes on the table is a slow-down of new store launches and a host of new offerings that carry lower price tags.
Interim executive chairman Godfrey Davis noted, “Following the recent change in management, we are focusing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers.”
"This will have short term financial consequences, but is necessary to ensure the future strength of the Mulberry brand. The group remains profitable and cash generative, giving us the resources to invest for the future.”
And for all of you bargain hunters out there, look for a fresh batch of Mulberry finds projected to cost 15-20 percent less than usual. Davis added, "We want to give our loyal British customer a fair, attractive deal, a collection they can really sink their teeth into.”