British luxury brand Mulberry has issued a profit warning after “disappointing” trading so far this year.
The luxury label today said that due to “weaker than anticipated” trading post-Christmas both revenues and profit before tax are expected to be below market for the year to March 31.
The revenues for the year are expected to be around £165m, with profit before tax forecast to be £26m.
Despite retail sales over Christmas being in line with expectations trading during the last 10 weeks has been “disappointing” including a reduction in tourist spending in London stores. Like-for-like growth across Mulberry’s retail arm is expected to be around 6%.
Wholesale revenues for the year are expected to be down 15% due to channel rationalisation and lower than expected in season ordering. The brand however said the order book for autumn 13 is “building satisfactory”.
Chief executive Bruno Guillon said: “After three years of rapid growth, Mulberry has experienced a year of consolidation whilst we build the foundations for future growth. We are focused upon optimising the distribution network and adapting our tactical marketing strategy to drive international brand awareness. We continue to reinforce Mulberry’s luxury positioning through an enhanced focus on creativity, craftsmanship and quality.”