Mulberry’s luxury leather handbags are in such high demand that this particular division within the fashion line prompted the company to increase its earnings forecast for the year. The new prediction was that of doubling the growth of wholesale revenue. Wholesale orders for this fall are expected to be 100 per cent above last year’s levels.
Sales increased by 57 per cent in just the 40 UK stores in the 10 weeks leading to the start of the fourth quarter when compared to the same period last year. Like-for-like sales across all of the 90 worldwide stores saw an increase when compared to last year of 79 per cent.
Mulberry’s chief executive Godfrey Davis said: “We’re seeing good organic growth in the markets where we’ve historically been strong – in the UK and Europe. And we’re also seeing equally strong – if not stronger – growth in our newer international markets. We’re seeing very strong growth in Asia and our small business in the States is also growing strongly. The Mulberry brand is proving to be desirable in all those markets.”
Mulberry’s fashion line is comprised of leather goods that include bags, luggage and accessories as well as shoes and women’s wear. The leather goods comprise 95 per cent of their total revenue with 75 per cent of it being specifically bags.
The company’s handbags are a prized possession of many top celebrities, models, and others in the fashion industry. Their big rebranding surge came in 2002 with a successful launch of a bag designed by former Vogue editor, Luella Bartley. Then in 2004 the British Fashion Council named Mulberry as the “Best Accessory Designer” and their bags have continued to see a surge in demand by women in many countries.