Handbag maker Mulberry profits down by a half

The luxury handbag maker Mulberry plans is to move to meet demand for lower-priced products today after a disastrous year in which profits were cut by nearly half to £14 million.

The Somerset-based firm will sell more £500 to £800 products price range, a change from selling more bags over £1,000.

Luxury handbag maker Mulberry sales down by 15%. Credit: Graylock/ABACA USA/Empics Entertainment

The recently launched Tessie collection is proving popular but with the rebalancing of the product range expected to take time Mulberry said that like-for-like sales in the 10 weeks to June 7 were down by 15%.

Profits in the year to March 31 slumped from £26m a year earlier due to costs associated with opening new stores and other one-off items.

In a statement, the group said total sales were slightly lower at £63.5m and gave no update on its search for a chief executive after Bruno Guillon left in March