MULBERRY's CEO, Bruno Guillon, insists that the British brand's dip in sales is just "a blip". Last month, the luxury label announced that revenue growth for this year would be lower than expected - resulting in a 25 per cent drop in shares on the London stock exchange.
Guillon explained that the fall in profit was planned and expected, due to the brand's decision to reduce the number of retailers that it partners with - limiting the sale of its luxury goods via the most upmarket stores only - a move that he argues would inevitably result in a drop in sales.
"Our products stand for quality and craftsmanship," Guillon told The Financial Times. "As a result, we want the best-quality [service] also."
Mulberry's mainline of in-demand handbags is manufactured in the UK and currently accounts for a fifth of the company's sales - a proportion forecast to increase over the next five years to 50 per cent, thanks to expansion plans in Britain.
"Everyone I talk to in Asia, whether in Hong Kong, Shanghai, Tokyo or parts of India, tells me they have a great deal of respect for British products and want to buy them, providing the quality is right," said the businessman. "Of course I am not happy [with these recent sales figures]. I'd like to be in a position to be able to present better figures. I want to do better for the shareholders."
The CEO insists that the "blip" will not have an effect on Mulberry's long-term profits, an expectation shared by Barclays Bank analyst Helen Norris.
"Mulberry has now acknowledged that the global slowdown is beginning to have an impact," she said. "However, this is coming after three years of strong growth. If you consider the longer term, then the company is still in a great position."