Mulberry shares drop

Friday 15 June 2012 10:02 BST
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Despite fashion's love affair with Alexa Chung, pictured left, and Lana Del Rey celebrity-inspired handbags, Mulberry lost some key investor fans yesterday as shares fell 22 per cent after its current trading disappointed the City.

The company revealed a strong, full-year profit up 54 per cent to £36m and sales up 38 per cent to £168.5m for the year. However, poor April sales and a massive 24 per cent fall in outlet sales led the market to sell out, with shares closing down at 1,560p.

Matthew McEachran, retail analyst at Singer Capital Markets, said: "They are a good set of results, but trading has been disappointing and there is low transparency on gross margins. But the business has super, long-term prospects."

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