Mulberry share price drops as profits slump

Luxury brand Mulberry has seen its share price drop one per cent on the back of news that the company suffered a massive drop in profit before tax of 45 per cent for the year ended 31 March.

The handbag maker has issued two profit warnings so far this year and lost its chief executive and creative director.

The company's retail sales were flat, while like-for-like retail sales fell a whopping 15 per cent in the last in the 10 weeks ended 7 June, with Mulberry forecasting a "double digit decline" in wholesale sales for the year.

The company attributed the poor results in part to the cost of opening new stores over the last couple of years.

"While the business faces a challenging year, I am confident that we can build on Mulberry's solid foundations and unique brand positioning in the luxury market to restore growth in the medium term", said Godfrey Davis, Mulberry executive chairman.