Mulberry has been in trouble for a while now, but the brand is finally gearing up to address one of their biggest problems, reports Fashionista. On Thursday, Mulberry announced they will lower prices in an effort to drive up sales.
The fashion label, made famous for trendy handbags popularized by former creative director Emma Hill and legions of Alexa Chung wannabes, has issued two profit warnings to investors in less than three months. Mulberry credits the recent departure of CEO Brian Gullion and the declining value of two U.S. store locations with the decreased estimates.
Pricing has long been one of the reasons for Mulberry's financial troubles. Gullion drove up the prices for the popular handbags in hopes that this would attract more luxury customers, but the increases priced out existing customers and allegedly lead to Emma Hill's departure from the company. Interim Executive Chairman Godfrey Davis released a statement, republished by Fashionista, saying:
Following the recent change in management, we are focusing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers. This will have short term financial consequences but is necessary to ensure the future strength of the Mulberry brand.
This is great news for those of us looking to get our hands on the still-chic Mulberry handbags we've always coveted. Although we aren't quite living in an It bag era anymore (bye bye super-obnoxious logo purses!), Mulberry bags are both timeless and of-the-moment, as evidences by the celebrities like Cara Delevigne and Alexa Chung who support the brand.