Mulberry is upbeat despite its loss as Coca waits in the wings
MULBERRY’S doomed push upmarket caused the leather goods maker to slump to a first-half loss as it said it was no nearer to appointing a chief executive more than nine months after losing the previous incumbent.
The troubled handbag maker, which must wait until July to get its new creative director Johnny Coca, says he will be worth the wait.
Mulberry shares have fallen 21pc over the past year but added 10p to 790p yesterday despite a £1.1m loss for the six months to September 30.
Executive chairman Godfrey Davis, who is overseeing the business after parting company with French boss Bruno Guillon in March, said: ‘It is important he [Coca] feels he has obligations that he wants to honour. We are delighted to get him as he is the person we wanted.’
The firm, which also suffered from lower tourist numbers and weaker demand in its key Chinese market, saw sales fall to £64.7m from £78m. Wholesale revenue was down 31pc to £19.6m while the online sales were up by 18pc.
The firm said there had been a pick-up recently.
The success of its Tessie bag and a collection by model Cara Delevingne, pictured, have struck a chord with shoppers as retail revenue grew 8pc for the nine weeks to November 29 with online contributing to 18pc growth.
Davis said: ‘It is encouraging for us, as since September we have seen a significant pick-up in sales.
‘This is due to an improvement in our products at good price points which are also colourful and interesting to consumers. Our Tessie and Cara and Blossom tote bag has done well, as have small leather goods.’ Julie Palmer, a partner at consultant Begbies Traynor, said: ‘Having issued five profit warnings over the past two years, the market has come to expect bad tidings from handbag-maker Mulberry, and their first-half results are no exception.
‘Risky management decisions, such as using more expensive materials in order to push the brand further upmarket, combined with falling tourist footfall to their UK stores and weaker demand in key markets like China, have all contributed to the announced £1m in losses.’