Demand for quality keeps Mulberry afloat

Luxury handbags maker Mulberry today predicted it will smash market forecasts for the year as women keep buying the latest arm-candy.

Like-for-like sales shot up 46% in the 10 weeks to 5 December thanks to strong demand for its Bayswater, Mitzy and the new Daria bags. In the six months to the end of September, pre-tax profits rose 16% to £1.5 million on the back of total sales of £32.3 million.

Mulberry's latest range, the Alexa, named after TV presenter Alexa Chung, goes on sale last month amd has attracted a long waiting list. Chairman and chief executive Godfrey Davis said: "It is great still to attract a waiting list. We remain a little cautious about Christmas but we are doing so well because shoppers now demand quality."