Fashion house Mulberry reports blossoming sales

Fashion house Mulberry saw its shares rise by a fifth today after demand for handbags sported by stars such as Kate Moss drove a sales surge.

The firm, based in Bath, England, said new designs were selling particularly well and that profits for the year to March 31 should beat market expectations.

Like-for-like sales at the group’s UK stores were 50% higher in the first 11 weeks of the spring fashion season to April 2 – far outstripping the 15% growth achieved in the run-up to Christmas.

The group’s best-selling Blenheim bag, featuring its trademark pockets and broad flat straps, had contributed to the increase. Other top sellers included the Bayswater, as worn by Kate Moss, and bags used by actresses Kate Winslet and Scarlett Johansson.

Mulberry bucked the trend experienced by many of its rivals in the UK high street, who have suffered from weakening consumer confidence in the wake of interest rate rises.

Chief executive Godfrey Davis said: “Accelerating sales have outstripped expectations. The outlook is very positive, with strong demand for Mulberry handbags from all markets.”

The company sells from 13 outlets in the UK including concessions at Harrods and Harvey Nichols. It also sells its products – which include menswear and womenswear – in France, Germany, Finland, Norway, Denmark, Sweden, Japan and the United States.

Mulberry’s spring order book for accessories was 55% ahead on the previous year’s total order book, with eight weeks of the season remaining.

Mr Davis said sales to the US and the Far East had made a good contribution to orders.

The firm is due to report annual results in May. Stockbroker Teather & Greenwoo raised its forecast from £1.2m (€1.7m) to £1.6m (€2.3m) after today’s update.

Shares lifted 19.5p to 119p today.