Mulberry ups forecasts as festive rise in turnover boosts share price

LUXURY fashion brand Mulberry raised its annual profit forecast yesterday, after it enjoyed a 41 per cent rise in festive sales during the six weeks to 14 January.

Like for like sales were up 35 per cent over the same period and wholesale orders for its spring/summer line were up 35 per cent on last year, with two months trading still remaining.

“I am delighted that trading during Christmas and the New Year has been strong and consequently the results for the year to 31 March 2012 are likely to exceed our earlier expectations,” said Godfrey Davis, chairman and chief executive.

The Christmas surge has been attributed to strong sales of its luxury handbag range, with the Alexa bag, named after TV presenter Alexa Chung, being a particularly popular item. Several store openings this year in Asia, including five in South Korea, have helped demand increase in the growing high end Asian market.

Mulberry is the latest luxury retailer, along with Burberry, to post strong sales in contrast to the high street economic gloom that forced Peacocks into administration earlier this week.

Its shares rose 78p yesterday to £15.56, an increase of five per cent.