You may be changing your it bag to a Mulberry next season following the news that the British luxury accessories brand will be lowering its prices after warnings that profits would be significantly less than expected, as reported in Reuters.
Under the recently departed CEO Bruno Guillon, the heritage brand raised its once affordable prices higher and higher in order to reinstate Mulberry as a competing brand to likes of Prada, and away from the mainstream appeal of brands such as Michael Kors.
However, after poor performance from the Christmas sales, particularly in South Korea and Britain, and downturn in profit since the departure of creative director Emma Hill in 2013, it has not been looking good for Mulberry. Perhaps this proves that even having Cara Delevingne as the face of your brand cannot always guarantee success in the store.
Much to the rejoicing of customers, prices of popular bags such as the Alexa and Del Ray could be down by up to £100 each.
However, for those of you wishing to invest in alternative heritage British brand Burberry, you will have to add a bit more budget allowance as the company has confirmed that prices will be increased in order to compete with international exchange rates. With 41% of sales coming from Asia Pacific, it is easy to see that there is a great deal of international commerce, which is in turn affecting profit margins as these sales are worth less once converted back into pounds. It was noted in The Times that adverse exchange rates could knock £30 million off Burberry's profits next year, which new Creative Director Christopher Bailey will no doubt be keen to amend.
This news comes just as the brand is about to open its biggest store in Shanghai later this month, which is certain to be a momentous affair if previous events are anything to go by.