Mulberry's stock loses 33% value today. It has begun.

[Wolfshade]

UK luxury handbag maker Mulberry has said its full-year profits will "substantially" miss expectations, sending its shares down by a quarter. Pre-tax profits have been hit falling from £19m, compared with analysts' forecasts of about £27m.

Have these expensive handbags finally hit reality?

It's time to be honest here. I want you to look at your accessory budget, price some of the things you want to buy and answer the poll.

If Mulberry wants to get people like YOU buying much more regularly and getting new clutches what should they do in the next 6 months?

Prices are good - Mulberry is costed properly for their quality now. They should focus on even higher quality to pull ahead from any competition.
Lower Prices 10% - Mulberry is slightly overcosted now. It's not too bad and a small reductions would increase sales substantially.
Lower Prices 20% - Mulberry is moderatly overcosted now. It's pretty bad and it will take a notable change to turn things around.
Lower Prices 30% - Mulberry is severely overcosted now. Mulberry is killing itself with their prices and needs to act decisively to turn things around.

Remember to compare their costs to the competition that mosts interests you.

VOTE!

[Cap'nSmurfs]

I think I love you.

[Mr Mystery]

Of course, I shop with Burberry because their's bags are more competitively balanced.

[Wolfshade]

Of course, I shop with Burberry because their's bags are more competitively balanced.

I think you are missing the point that the quality of burberry is far below the standard of mulberry, you can't really compare the two. You may as well use a tesco carrier bag!


I think I love you.
I get that, a lot.

[Mr Mystery]

I think you are missing the point that the quality of burberry is far below the standard of mulberry, you can't really compare the two. You may as well use a tesco carrier bag!


I get that, a lot.

No. Stop being a Whiteknightmulberryfanboiapologist.

Burberry are betterer because they're more competitively balanced and if you need me to explain what I mean by that rather nebulous statement then you're clearly just a Whiteknightmulberryfanboiapologist.

[ACE01]

YEAH MOAR POLES'S!

This made me chuckle so much I did a vote :P

[Deadlift]

My wife's fault, she's a huge mulberry fan. Loads of handbags, wallets and matching key fobs. I even have 2 of the man bags :o. But last year with the house move no mulberry purchases. So yes all the wife's fault.

[Bigred]

I knew when Mulberry started producing finecast handbags - it wasn't going to end up well...

They really need to return to their classic metal handbags.

But what are you gong to do - welcome to the cutthroat world of women's fashion - here today, gone tomorrow.

[Kirsten]

I have never even heard of Mulberry, so I can pretty safely say they wont get me buying a bag...

[Psychosplodge]

Clearly they could outsource the manufacturing process to china, and use a thinner leather.
Then we can have all the mulberrys we want.

[Wolfshade]

What they need to do is scrap their mens range and just concentrate on the core female market. They need to release newer bags more often, the other accessories are nice, but it really is diluting away from the core business.

[Psychosplodge]

It's getting ridiculous though, what with every new bag being bigger than the previous bag.

[Kaptain Badrukk]

Personally I've been buying my bags from a FLBS because I get a lower price and the guy in there doesn't make eye contact or talk to me like in normal shops. I hate that people in the MalB shops try and SELL me their products!

[Wolfshade]

Only noobs pay retail...

[Deadlift]

To be fair if you buy a faulty Mulberry bag, they will either fix or replace it. Games Workshop on the other hand released and sold us a finecast fix it kit so we had the pleasure of fixing their mistakes on our purchases. Genius.

[Kaptain Badrukk]

They did? I just keep returning miscasts till I get the the one I want, and they often let me keep the extras. Last year they sent me 4 miscast sets of iron hands upgrades in a row, so now I have enough cyber bits for a 10 man squad.
Mulberry on the other hand don't let me keep my mis-sewn bags.

[Mr Mystery]

That's the main reason I'm not fussed about Finecast. Any errors are eventually corrected at no additional cost other than a bit of waiting time.

It's impressive customer service and no mistake. Though I do benefit of being five minutes down the road from my local store!

[Denzark]

Men should know nothing about bags. It is not manly. It is not darwin. The manbag is an oxymoron. Mulberry should not even be in a man's vocabulary.



Except for my Cadian Signal Officers' satchel that came with 6th ed collectors' edition. That is not a manbag. It is the height of geek chique.

[Deadlift]

Men should know nothing about bags. It is not manly. It is not darwin. The manbag is an oxymoron. Mulberry should not even be in a man's vocabulary.



Except for my Cadian Signal Officers' satchel that came with 6th ed collectors' edition. That is not a manbag. It is the height of geek chique.

I've got that one too, the Mulberry stuff has been drummed into me by the formidable Mrs Deadlift. Luckily most the bags she buys herself :)

[Wolfshade]

Men should know nothing about bags. It is not manly. It is not darwin. The manbag is an oxymoron. Mulberry should not even be in a man's vocabulary.



Except for my Cadian Signal Officers' satchel that came with 6th ed collectors' edition. That is not a manbag. It is the height of geek chique.

Mulbery should be, do you not recall "Round and round the mulbery bush"?

A friend of mine has one, called beefy, that was like 400, and it is just a big shapless square.

[Denzark]

Wolfy, I'm all about the bush, but where do I find this mythical Mulberry?

[Wolfshade]

FLBS (friendly local bag store), they are a good place, can talk you through it, show you the basics, possibly show you some alternatives. Or you can go to a Mulberry store, but that is more sale focused and only sells Mulberry though.

[Wolfshade]

Oooh, the CEO is gone!



MULBERRY GROUP PLC

Board Changes

Mulberry Group plc, the English luxury brand, today announces that Bruno Guillon has advised the Board of his intention to step down as CEO of Mulberry with immediate effect. Godfrey Davis, who is currently non-executive Chairman and was previously CEO, will become Executive Chairman until a successor is found.

Commenting on Mr Guillon's resignation, Godfrey Davis said:

"I, along with the Board, would like to thank Bruno for his hard work over the past two years. He has helped improve the quality of the Mulberry offering and enabled the company to increase its international appeal and grown international retail sales. I am confident that Mulberry has the heritage, brand appeal and products to build on what has been achieved."

Enquiries:
Pelham Bell Pottinger (Gavin Davis / Dan de Belder) 0207 861 3232
Altium (Ben Thorne / Katherine Hobbs) 0207 484 4040
Barclays (Marcus Jackson / Nicola Tennent) 0203 623 2323

[Cap'nSmurfs]

But if they make bags, why are they called Mulberry?

[Wolfshade]

Roger Saul established the business in Somerset in 1971 using £500 he received on his birthday. He named the brand after the Mulberry tree that he walked past each day in the grounds of his school

http://www.mulberry.com/explore/about-us

[Deadlift]

But if they make bags, why are they called Mulberry?

The logo of the bag is a Mulberry bush.

Wife bought a bag a few weeks ago. She got one of those idiotically high bonuses bankers get and added another to her handbag collection. Four figures were talking here and she moans about GW prices :(

[Cap'nSmurfs]

Did that one just go over people's heads, or are you guys being deliberately obtuse :)

[Wolfshade]

Did that one just go over people's heads, or are you guys being deliberately obtuse :)

I see all :p

http://www.lounge.belloflostsouls.net/showthread.php?42934-Why-does-GW-call-itself-Games-Workshop-and-other-favourite-questions

[Wolfshade]

So Mulberry must have seen the results of our little poll and having issued another profit warning have issued this statement:

Following the recent change in management, we are focussing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers.

This will have a short term consequence but is necessary to ensure the future strength of the Mulberry brand.

So there we have it 2 profit warnings, one leaving CEO and a dilution of the brand from "high" (read: expensive) fashion to things more affordable.

Interesting days.

Though interestingly, the stock did not take a nose dive from this latest warning and has recovered some of it's initial 33% fall and is now trading at about 20% pre-profit warning levels.