Luxury handbag maker Mulberry disclosed a profits fall of 28% today as it admitted that it has yet to replace creative director Emma Hill six months after she announced her departure.
The fall in pre-tax earnings to £7.2 million for the six months to the end of September came despite a 4% increase in like-for-like retail sales.
This was wiped out by a 5% drop in wholesale revenues, driven by lower orders in Europe, and the cost of overseas expansion. Mulberry announced a flagship Paris store is due to open in 2014/15.
The company was shaken by the announcement of Ms Hill’s departure earlier this year, which sent shares tumbling. She was credited with turning the firm from a trusted briefcase and wallet maker into an international fashion powerhouse.