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Mulberry says profits to rise with boost from Alexa bag

LUXURY brand Mulberry has predicted that it is on the way to smashing profit forecasts for the year as its “Alexa” range helped to boost sales.

The handbags, named after and designed for TV presenter Alexa Chung have been a hit since their launch last month.

“It is clearly very helpful for sales when someone like Alexa is carrying your bag,” said chief executive and chairman Godfrey Davis.

It is the second time in three months that Mulberry has raised forecasts, and the boost will help to fund increased spending on advertising next year.

City analysts are now pencilling in pre-tax profits of £6m for the year to the end of March, up from earlier estimates of £4.8m. Davis also said demand from department stores such as Selfridges and Harrods had exceeded expectations.

A large Alexa shoulder bag in oak shiny leopard design costs £895, while the smaller version is £450.

The Bath-based company has 18 stand alone stores in the UK, with its goods on sale at 300 stores across the globe through franchises and concessions. The Mulberry brand is popular with foreign visitors who had taken advantage of the weak pound to snap up luxury items on visits to Britain.

It also has outlets in airports across the UK.