Mulberry plans to add 15 overseas stores to its existing 55 in a push to take advantage of growing spending power in emerging markets despite a decrease in growth this year.
Despite the bad news, Mulberry is going ahead with plans to build a £7.5 million factory in Bridgwater with support from the Regional Growth Fund, leading to the creation of 300 jobs.
British luxury bag manufacturer Mulberry announced a drop in shares of 22% to £15.65 – leading to a “disappointing” market capitalisation of £933m.
The drop in share price is a kick in the side for the company, even though the growth it has seen over the past two years has been huge – largely owing to an expanding Chinese middle class with a thirst for luxury goods.
According to Bloomberg, market analysts predicted sales of £175.3m, but the figure only amounted to £168.5m. Before today, Mulberry shares had risen by 34pc this year.