Experts have predicted that Mulberry Bags sales could treble over
Experts have predicted that Mulberry Bags sales could treble over the next five years to more than £500m. Analysts at Bain & Co, however, have picked up on signs of a slowdown in China and warned in a report last month that sales of luxury products there may slow next year, albeit followed by a resurgence in 2014. Demand from Asia remains strong nonetheless.
Mulberry said sales to partner stores and wholesale customers in the Asia-Pacific region grew by 70% over the period to £25.1m. The company said it was targeting up to 20 international store openings. According to Thursday's results, international sales grew by 61%.
Philip Dorgan, a retail analyst at the City brokerage Panmure, described the results as a "slight miss" after profits came in £1m below expectations, but said extra costs such as a fully funded appearance at British fashion week had to be absorbed in 2012. Dorgan said Mulberry's future prospects were strong, particularly abroad.
"We believe that the next few years will see the Mulberry brand significantly extend its global reach," he said. "Its design team has developed an outstanding product that appeals to a broad range of consumers, built upon strong existing craftsmanship and quality connotations. We expect strong product development to accelerate this momentum."
Mulberry Bags Outlet said on Thursday that it would open a second factory in Somerset, doubling its UK capacity and creating 300 jobs.