Mulberry pledged to meet demand for lower-priced products today after a disastrous year in which profits were cut by nearly half to £14m.

Mulberry’s French boss has quit the luxury handbags firm today after a testing two years at the helm.

World markets slipped into the red today after a scheme to boost liquidity and ease the eurozone debt crisis failed to settle traders’ nerves.

Leather goods retailer Mulberry said its focus on handbags and accessories had “delivered” as it revealed its best profits in a decade today.

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.