The British fashion company reported a pretax profit of
The luxury bags, clothes and accessories maker came under scrutiny under the control of Guillon, who joined the company in 2012 from luxury French brand Hermes. Mulberry was accused of pricing itself out of the market by raising its prices too quickly.
Under Guillon's helm, Mulberry issued a profit warning four times in just two years. Mulberry announced his departure with immediate effect in March, but the company's reputation as a brand in comparison to British rivals such as
Mulberry said its profit fall in the year just ended was partly due to an increase in store opening costs in the US, resulting in an impairment of
The company left its dividend unchanged at
As well as profit, revenue has fallen. In the year just ended, sales fell to
The company said it is now taking steps to restore the business to growth, including the introduction of lower-priced "more affordable" luxury goods, in an attempt to reinvigorate sales.
"We have listened to our customers and are introducing attractive new products in the key
Davis switched to an executive role following Guillon's departure until a successor is found. Mulberry provided no update on the search Thursday.
Davis warned that whilst the launch of lower-priced products will help the business in the longer term, there is no quick fix to bring sales and profits back to the levels they were a few years ago.
"While the business faces a challenging year, I am confident that we can build on Mulberry's solid foundations and unique brand positioning in the luxury market to restore growth in the medium term," said Davis.
Mulberry said that total retail sales in the first 10 weeks to
The company said it is expects a double-digit decline in wholesale sales for the current financial year.
Mulberry has also put the brakes on international expansion, by slowing the rate of its own store openings for the year ahead, so it can focus on controlling costs while its existing stores gain traction.
In the year just ended, Mulberry opened seven new directly operated stores in the US,
However this year, Mulberry said it plans to open just five new directly operated stores and fit out the
Mulberry said it plans to spend
Mulberry shares were down 0.2% Thursday mid morning at
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