Mulberry Tumbles on Profit Warnings, KPMG Fines Ted Baker

Sarla Buch
20 Aug, 2018
New York City

Mulberry tumbled after the luxury retailer warned of weak sales. The U.K. government took over the operation of Birmingham prison from G4S. KPMG fined Ted Baker for auditing misconduct.

[R]4:00 PM Frankfurt – Mulberry tumbled after the luxury retailer warned of weak sales. The U.K. government took over the operation of Birmingham prison from G4S. KPMG fined Ted Baker for auditing misconduct.[/R]

In London trading, FTSE 100 index increased 43.26 or 0.6% to 7,601.83 and in Frankfurt the DAX index jumped 140.03 or 1.2% to 12,351.58.

In Paris, CAC 40 index advanced 45.89 or 0.9% to 5,390.82.

Mulberry Group Plc tumbled 22.7% to 440 pence after the U.K.-based luxury handbag maker today warned that fiscal 2018 group profit will be materially reduced after sales in House of Fraser stores are weaker than expected.

Mulberry said it will take one-time restructuring charge of £3 million in the results for the six months ending in September 2018 and the retailer added weak sales in the U.K. retail market are likely to persist.

However, the handbag maker said group has financial resources and continues to follow its strategy to develop Mulberry into a global luxury brand.

G4S Plc fell 0.7% to 250.60 pence after the U.K. government took over the HMP Birmingham operations for an initial six-month period as the security services provider is not in a position to manage out-of-control prison.

Ted Baker Plc gained 0.1% to 2,176 pence after the U.K.-based Financial Reporting Council KPMG fined £3 million to the luxury apparel retailer for the misconduct during the auditing periods between January 2013 and 2014.