It's in the bag as Mulberry reaches its global target

The boss of Mulberry today hailed its emergence as a global luxury player as the handbags maker raised its profits forecasts for the second time in six weeks.

"Mulberry has reached a tipping point. Later this year we will have more shops overseas than in the UK for the first time," said chief executive and chairman Godfrey Davis.

"We are a mature brand in the UK and in parts of Europe, but we are becoming a really desirable label in Asia and the US, showing that Mulberry is a brand which works worldwide."

He added that the VAT rise had not hurt UK sales, despite Mulberry upping its prices in line with the tax.

In a surprise statement, made necessary by rocketing demand, the company said like-for-like sales in its full-price stores rose 70% in the six weeks to 15 January, compared with the same period last year. Wholesale orders for its spring 2011 collection are up 104% thanks to strong demand from Asia and increased confidence among department store buyers.

Mulberry recently added the Tillie (above), a range of satchels, to its stable of bags, which Davis said had sold very well. He added: "Every season we want to bring in a new star bag."

Other hits include the Alexa, named after the MTV presenter and model Alexa Chung. Mulberry's designs have proved popular with tourists coming to the capital for shopping sprees, with Brazilian shoppers among the big spenders.

Altium, which has a buy rating on the shares, is pencilling in profits of £18.5 million for the year to the end of March, compared with previous forecasts of £15 million.

Mulberry's house broker has also doubled its price target for the shares from 1000p to 2000p.