Mulberry says cost controls will help turnaround full year earnings

British luxury retailer Mulberry said its cost control measures should help it report better than forecast earnings for the full year.

The company, known for its popular ‘Alexa’ handbags, last October warned on profits, leading it to implement a series of cost control measures.

That seems to be paying off according to the company’s management, who have installed new chief executive Thierry Andretta.

On Thursday, Mulberry said that its retail trading has been improving and its Spring/Summer collection has been well received.

For 2015, Mulberry said its retail sales will be 1% ahead of the previous year. It added that revenue for the year that ended 31 March 2015 will be in line with expectations at £148m versus the 2014 figure of £163m.

“The encouraging retail trends over the last five months reflect our reinvigorated product offer and focus upon our customers,” said chairman Godfrey Davis.