Mulberry: the decline of the luxury sector

Mulberry, the British heritage brand that is best known for their classic bags with celebrity fans such as Alexa Chung and Lana del Rey, seems to be struggling in today's tough economic climate. Their shares lost nearly a quarter of their value today indicating the steep fall in international sales (yes, yet again, we are looking at the ailing Asian demand).

The Chief Executive, Bruno Guillon, is pretty optimistic though and maintains that Mulberry is still a profitable firm. In fact, in the 6 months to the end of September 2012, UK sales increased by 13% compared to the same period in 2011. It's almost impossible to walk around London and NOT see several people with their Mulberry armcandy. Their classic and beautifully crafted designs are loved in the UK by women of all ages and the recent celebrity designs have pulled in a newer, younger generation too. But whether Mulberry will pull in the punters in Asia is yet to be seen.