Mulberry warns on profits on lower tourist spending

LUXURY brand Mulberry this morning issued a profit warning, as lower tourist spending led to weaker post-Christmas sales.

Pre-tax profit for the year to March is now expected to be around £26m, on revenues of £165m, compared to consensus forecasts of £31.2m on revenue of £177m.

Last year Mulberry posted pre-tax profits of £36m.

“However trading across the retail portfolio during the last 10 weeks has been disappointing, including a reduction in tourist spending in the London stores,” the firm said in a trading statement.

Retail like-for-like growth is expected to be around six per cent for the year, Mulberry said, although wholesale sales are expected to be down 15 per cent.

Mulberry shares were trading down more than 16 per cent in early deals.