Luxury brands Prada and Mulberry have given us a tale of two halves when it comes to their most recent fiscal statements.
Yesterday Prada announced that net profits had risen 50 per cent to £330 million in the nine months ended October 31, while Mulberry announced a 36 per cent fall in pre-tax profits to £10 million in their half-year report.
READ: Miuccia Prada: 'I thought fashion was dumb'
Mulberry, who issued a profit warning in October, blame the slow down in consumption in China as one of the main reasons for the tumble. Adversely, Prada has credited Asian consumers with boosting their profits, reports The Independent .
The opposing financial stories come as Mulberry faces up to the effects of its decision to stop supplying small retailers in Italy and Belgium whose stores it considers too downmarket, in a bid to up their luxury ante.
But it's not all (that) bad, Mulberry did report a 6 per cent rise in sales to £76.5m, and CEO, Bruno Guillon, is adamant that his strategy will see profits rise in the long run. In contrast, Prada has seen sales rise by 34 per cent in the last nine months, with a 51 per cent rise in the sale of leather goods, the strongest area of growth.
Object of desire: Prada's jewelled shoes
Both brands started out producing luxury leather goods before branching out into ready-to-wear fashion after building up a following. Whilst Italian brand Prada is known for its fashion-forward and, at times, unusual collections, Mulberry labels itself a British heritage brand.
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