Mulberry Deteriorated Same Store Sales Fell 15%

　　 Britain Luxury leather goods brand Mulberry Mai Bao Rui today announced the 14 fiscal year ending March 31, 2014.

The annual pre tax profits, such as the second profit warning issued in April, cut sharply from 46% in the 2013 fiscal year to 14 million pounds in the 2013 fiscal year. Net profit was 8 million 600 thousand pounds, down 54% from 18 million 700 thousand in the previous year, and the total sales fell slightly from 1% to 163 million 500 thousand pounds last year, which was 165 million 100 thousand pounds last year.

Godfrey Davis, executive chairman of Mulberry's board of directors, said in its annual report that the group is taking steps to restore growth through creating more attractive new products: "we listened to our customers and launched new products at the critical price range of 500-800. As the first step, the new Tessie series has been launched two weeks ago and is very popular with consumers.

Mulberry Mai Bao In the past two years, Bruno Guillon, a former CEO of Herm s international Hermes group, has tried to become a high-end luxury brand under the leadership of Bruno Guillon, a former CEO of the Hermes international group. He focused on developing handbags with more than 1000 pounds for wealthy customers in China and the Middle East, while ignoring the real needs of local consumers, resulting in a sharp decline in group performance.

After the resignation of Bruno Guillon at the end of March this year, Mulberry Mai Rui began to admit that the pricing strategy was wrong and promised to return to the low price strategy. However, according to the latest data disclosed today, the low price strategy is still not effective. In the first 10 weeks of the current fiscal year ending June 7, 2014, the group's same store recorded a 15% decline, much higher than the 3% decline in the 2014 fiscal year, and an annual decrease of 9% in retail channel revenue, which proved that the previous high price strategy had made the brand lose quite a number of customers.

Mulberry Mai Bao Rui's annual retail channel revenue was 109 million, an increase of 2% over the same period, while wholesale channel revenue fell 6% to 54 million 500 thousand pounds over the same period. The group said that the current fiscal year is still full of challenges. It is expected that the wholesale channel revenue will double digits in the current fiscal year. The group decided to distribute the annual dividend of 5 pence per share, similar to the 2013 fiscal year.

Barclays barclays bank analyst Helen Norris pointed out in the research report that Mulberry Mai Bao Rui entered the new fiscal year with a transitional state. It is expected that the operation will continue to be difficult in the first half of the year. She reduced the group's pre tax income in fiscal year 2015 from 11 million to 10 million pounds.

　　 at present Mulberry Mai Bao Rui is still in the vacuum of leadership. Emma Hill, the former creative director of the group, has resigned as early as June 2013 because of differences with the former chief executive Bruno Guillon on the brand development route. After Bruno Guillon stepped down, executive director Godfrey Davis acted as interim chief executive officer.

Godfrey Davis's visit to the British version of Vogue revealed that the Tessie series sold 500 handbags in only two weeks. It was very successful, but similar to the analysts' views, it predicted that the first half of the fiscal year would be relatively difficult. The second half of the fiscal year is expected to grow in some areas, but it will not be fully realized until the next 2015 fall and winter May.

Mulberry opened a 4.5% decline on Thursday, narrowing to 1.13% in early trading and 700 pence at the time of the deadline, which has fallen 25.7%. In the two years that Bruno Guillon was in power, Mulberry's stock price fell by 68%, and its market value evaporated 2/3.