One of the UK’s most well known luxury goods makers, Mulberry, has announced a sharp fall in profits over the last 12 months. The news comes after a turbulent year that started with the resignation of CEO Bruno Guillon, whose two-year tenure in charge of the handbag maker had seen an effort to push it towards the higher-end of the market.

[P]rofits have sunk 74 percent
to £4.5m

However, the choice to pursue the luxury end of the fashion market had led to a decline in sales and the company’s share price slumped by 67 percent during his two years in charge. A series of profit warnings then came over the last 12 months, as Mulberry attempted to get itself back on track. Now, after a year where the company has tried to recapture its place in the more affordable luxury fashion segment, profits have sunk 74 percent to £4.5m.

Despite this dramatic slump, Mulberry remains positive about its prospects, citing a rise in sales over the last ten weeks as vindication for the new strategy. Chairman Godfrey Davis said in a statement that since November, sales had risen as a result of the changes. “We have focused on creating desirable new products across the entire Mulberry range whilst continuing to invest for the longer term. Our initiatives to re-engage with our customers have delivered promising results.”

Mulberry has also welcomed a new CEO in the form of Thierry Andretta, who joined in April. Andretta had previously sat on the board of Mulberry, and previously was CEO of Italian jewellery brand Buccellati. He added in the statement that he was “pleased that the strategy that we approaved as a board last year is beginning to bear fruit.”

The company is also hiring a new creative director in the form of Celine’s Johnny Coca, who joins in July. Coca has been credited with driving up sales of French bag maker Celine over the last few years.