Mulberry’s pre-tax profits have slumped by 45% for the year to March 30, and the company is bracing itself for another “challenging year”.
Profits before tax fell to £14m for the year, while like-for-likes dropped 3% for the year to March 31 to £109m
Total sales decreased to £163.5m, down from £165.1m in 2013, while wholesale sales fell 6% to £54.5m for the year, due to slower UK and Asian sales.
Like-for-like retail sales fell 15% in the 10 weeks to June 7 and the company said a double digit decline in wholesale sales was expected for this financial year. International retail sales were up 11% to £17.1m.
In March Mulberry chief executive Bruno Guillon left suddenly after two years, and the accessories brand is recruiting for a replacement. It is also still looking to fill the creative director role left vacant by Emma Hill last summer.
Executive chairman Godfrey Davis has been acting as interim chief executive since Guillon’s exit and has already made a series of changes to Mulberry’s strategy, including dropping the price of its entry-level bags by around £100.
The first step of this was to introduce the new Tessie collection two weeks ago.
Davis said the brand faced a “challenging year” as these changes were implemented. “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.”