British designer bag retailer, Mulberry is set to announce impressive sales increases as the introduction of French Chief Executive Bruno Guillon pays off for the Somerset-based store.
The store was founded in 1971 by Roger Saul and his mother Joan and has been consistently profitable throughout its tenure, but since Guillon’s arrival in March, it has gone from strength to strength and is now looking forward to the next stage of its development too.
On Thursday, Guillon will reveal the first set of results generated during his time with the company and they are expected to show a 50 percent increase in pre-tax profits, amounting to £35.4 million. This is a product of the £175 million generated through sales in the year up to March 2012. Shares in Mulberry are also up 50 percent to 1950 pence, valuing the company at 1.2 billion in total.
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The main causal factor seems to be the former Managing Director of Hermes’s overseas clout, as the company looks to branch out even further over the coming months.
New branches have already been opened in New York, Tokyo and Seoul, with focuses now being turned to China, despite a current slump in consumer confidence in the East Asian market.
Mulberry has recently enjoyed success in the launch of its new Lana Del Ray bag, dedicated to the contemporary popular singer and style icon. This is just one of many products the company has in its repertoire, of which; two-thirds are sold within the UK. However, increasing international demand is expected to bring about the positive predictions anticipated by Guillon later this week.
At the current rate of expansion and growth, experts are hypothesising that sales could triple over the next five years to the total of more than £500 million.
Panmure Gordan analyst, Philip Dorgan has paid homage to Mulberry’s success, especially in the difficult economic climate: "It is one of our top picks in 2012, because we feel that it can deliver significant, sustained top line growth that will have a leveraged impact upon profitability."