LONDON — Profits at Mulberry Group dropped 26 percent to 18.7 million pounds, or $29.5 million, in the year ended March 31, on the back of broadly flat sales and costs related to new store openings and a contraction in gross margin.As reported, sales in the period dipped 2 percent to 165.1 million pounds, or $260.9 million, with retail revenue up 8 percent and wholesale revenue down 16 percent, as the company pursues a strategy of opening directly-operated stores and culling certain wholesale accounts.Dollar figures have been converted at average exchange rates for the 12-month period. "Mulberry ended the year in line with the guidance given in March," said Bruno Guillon, the company's chief executive. Over the past 12 months, Mulberry has issued two profit warnings.RELATED CONTENT: Click Here for More Earnings Coverage >>"After three years of rapid growth, we have had a year of consolidation during which we have laid the foundations for the transition of Mulberry from a U.K. success story into a global luxury brand. In particular we are increasing U.K. production and enhancing both our retail experience and product range," Guillon said.RELATED STORY: Mulberry Fall 2013 >>The executive added that more than 80 percent of sales currently come from the U.K. and Europe, where the economic climate remains difficult. "Mulberry's challenge for the future is to accelerate our brand awareness in the U.S.A. and Asia. Greater visibility in Asia will allow us to benefit from tourist traffic in Europe and the U.S.A. at the same time as growing our business locally," he said.The reduction in gross margin, he noted, was due to product-related overheads and higher raw material costs, which were not reflected in prices until last November.Guillon said that current trading was positive, with retail revenue up 9 percent in the 10 weeks to June 8, and same-store sales advancing 6 percent. "Modest growth" is expected for wholesale sales this year, while 15 to 20 new stores are set to open in the current year.As reported earlier this week, the brand's creative director Emma Hill is leaving the company. Guillon said the spring 2014 collection has been completed, and Hill continues to work in the business and on the collection for its runway show, which will take place on Sept. 15 during London Fashion Week. The timing of her departure is currently under discussion and has yet to be finalized.
“I design by visualization. I see things, and most of the time they’re not practical to actually make, and what I’ve found here, it’s like anything’s possible. This is the first time that I’ve made a sole unit in two months. That process usually would take six, so here’s a difference,” said @virgilabloh of the first sneaker sample he created for @louisvuitton, pictured here. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion (📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim
“I genuinely fell in love with water, I fell in love with Fiji, I fell in love with the whole life that we lived for those few months,” says @mrsamclaflin of filming for his new movie “Adrift” with @shailenewoodley. The 31-year-old actor spoke with WWD about his upcoming projects, meeting Jamie Dornan and working with co-star Woodley. #wwdeye (📷: @jamstoker)
3 years ago, fans of the late singer Aaliyah started calling for a collaboration with @maccosmetics. With the strength of social media — including mock ups of products — 25,000 people signed a Change.org petition for a limited-edition collection, and MAC couldn’t ignore the buzz. Tomorrow, MAC will unveil MAC x Aaliyah, a tribute to the singer who passed away nearly 17 years ago. Head to our stories to preview the new collection, which was worked on by Aaliyah’s family and inspired directly by her makeup bag. #wwdbeauty
Artistic director @clarewaightkeller will be dedicating @givenchyofficial’s fall 2018 couture show in Paris on July 1 to house founder Hubert de Givenchy, who passed away in March at age 91. Givenchy said the collection would be “an homage to his iconic creations, technique, and personal lexicon” and a “celebration of his timeless elegance and grace.” Head to WWD.com to read more. #wwdfashion (📷: Delphine Achard)
La Double J made a name for itself with its vintage-inspired prints, but for resort, designer JJ Martin has ventured into new territory: enter rich jewel toned solids and decadent embellishment, in the form of appliqués, crystals and sequins. #wwdfashion #resort19 #ladoublej
This Just In: J. Crew Group has named Johanna Uurasjarvi as its chief design officer.
Uurasjarvi succeeds Somsack Sikhounmuong, who left the company last September. Tap the link in bio for the full report. #wwdnews
“She came into my hotel room and she was like, ‘I have Chanel and Christian Dior.’ She was like, ‘Chanel likes you.’ And I was like, ‘I’m going to start crying,’” breakout star Maddie Hasson tells WWD of her styling sessions Molly Dickson. “I really like classic, elegant things. I love the way Anna Wintour dresses.” Read more about Hasson’s role in @impulseseries on wwd.com. (📸: @jgreenery ) #wwdeye
@virgilabloh revealed he's working with Australian stylist and
Vogue Australia fashion director @christinecentenera for his debut @louisvuitton men's collection, which will be presented in Paris on June 21. Centenera met Abloh while both working with Kanye West, where she consulted on his all his runway collections since his debut spring 2012 women's wear show. Read the full story on WWD.com. #wwdfashion #wwdnews (📷: @asussmanphoto)