Upbeat Mulberry's profits in the bag - Business - Evening Standard
       

Upbeat Mulberry's profits in the bag

Luxury leather goods group Mulberry today proved that the death of the It Bag has been overstated, after a sharp pick-up in sales at the end of December and in the January sales.

The quintessential English designer, whose accessories are worn by celebrities including Kate Moss and Scarlett Johansson, said it would bag higher profits for the year to 31 March than previously thought thanks, in part, to fashionistas snapping up its new Mitzy range of handbags.

Like-for-like sales rose by more than 30% on last year at its UK stores in the week preceding Christmas and during January.

Chief executive Godfrey Davis said Mulberry has also benefited from large numbers of Europeans descending on London to shop.

"As a sterling-denominated brand, we are good value at the moment, especially for European customers," he said.

Mulberry issued a profits warning in December after UK sales fell sharply in September. But unlike many of its rivals, Mulberry did not offer discounts before Christmas, a move Davis said aided its performance.

But he said Mulberry would continue to look at costs.

"The problem is that so much uncertainty remains," he said.

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