Per Sky News, the British luxury goods brand Mulberry has issued a profits warning to investors, claiming that a demand slowdown in Asia coupled with a 4% drop in wholesale sales has dented revenues.
The shares slumped by a staggering 30% on the news, however the company remains positive about the future, with CEO Bruno Guillon issuing an upbeat statement. He said “The Mulberry brand continues to gain recognition globally and we remain very confident in the outlook for the business.”
It follows a profits warning issued by fellow luxury brand Burberry in September and does raise doubts about the luxury goods industry in the short to medium term as the global economic slowdown causes many consumers world wide to slow down their expenditure on goods considered to be frivolous.