Not So Merry Christmas For Mulberry: Shares Fall On Profit Warnings

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Mulberry Bayswater, $1500

Xmas was a disappointment, London tourism is down  and even the Chinese market is cooling–though Hermes reports their sales are up 30% in China.

Via Financial Times:
“Mulberry issued a fresh349b48e970166de59f9b91c4527f8082 2b02287f2c176c44cec1105fb77e2519 profit warning on Friday after the British maker of expensive handbags suffered weaker-than-expected post-Christmas trading.

Shares in the company fell 15 per cent to £10.50 in early trading after it said pre-tax profit for the year to March 31 would be about £26m, down almost a third from the £36m achieved a year earlier.

 Analysts had on average been expecting about £31m, according to Bloomberg data.

Expectations had already been lowered after the luxury goods group issued a profit warning in October, when it blamed a decision to stop selling to less glitzy stores, as well as cautious buying by wholesale customers in Asia.

This time it said retail sales – defined73822671c6e673c70b35bbb7c7025490 as being from its own stores, department store concessions and online – had been disappointing during the last 10 weeks, adding that this partly reflected a cut in spending by tourists in London.”

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