Mulberry Value Plunges After Warning Issued
Luxury British fashion firm Mulberry has seen up to £140m wiped from its value, after issuing a dramatic profit warning.
It said annual profit would be "substantially" below forecasts due to heavy discounts in the Christmas period in Britain.
The company's share price dropped more than 15% before extending losses to more than 27% in mid-morning. It later eased to around 24% down.
As a result the firm saw its value drop to around £400m.
Here is the latest share price.
Chief executive Bruno Guillon said: "Due to tough trading conditions over the Christmas period which saw significant discounting across the market, Mulberry has experienced lower than expected UK retail sales."
It said total retail sales for the 17 weeks to January 25 were down 3% compared to a year ago.
Mulberry also said weak demand in South Korea was behind the profit drop.
Mr Guillon added: "Together with wholesale order cancellations from Korea, (this) will adversely impact our profit this year."
The Somerset-based firm has been reinvented from a trusted briefcase and wallet maker into an international fashion powerhouse with a clutch of celebrity fans.
But the company said that the all-important Christmas period, recorded as the eight weeks to January 25, were down 7%.
Many retailers depend on the festive season to support lighter sales periods elsewhere in the year.
UK sales represented 65% of the group's revenue in 2012-13 and the results suggest the home market is dragging the company down.
At the time Mulberry reported strong international sales growth of 34% in the same eight weeks.
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