Profits are in the bag as Mulberry defies the gloom

The retailer, whose handbags sell for up to 3,000, said it had continued to trade strongly since early December, particularly during the Christmas period.

Mulberry said the launch of its new Alexa handbag range – named after the "modern British style icon" television presenter Alexa Chung – had generated demand from both retail and wholesale customers.

A large Alexa shoulder bag in oak shiny leopard design costs 895, while the smaller clutch version is 450.

Chief executive Godfrey Davis said the firm had shown no sign of slowing despite the economic uncertainty that has gripped much of the high street.

He said demand throughout the year continued to grow and had exceeded expectations.

"A year ago things were looking quite depressing," he said.

"In our business it's just been a very strong year." Mr Davis added the financial worries had "not been apparent in our sales".

"Would we have done more if there had not been the economic uncertainty? Maybe we would," he said.

He said sales growth was around 20 per cent this year, adding "that is not really a recessive sales pattern".

Christmas trading was normal and while the firm saw its January sales slow, this was because it reduced the amount of stock in the seasonal promotions so margins were up. Mr Davis said recent trading and the outlook for the coming year were "really very encouraging".

"Looking at our order books the pattern continues," he said.

"We are still seeing strong demand and our international customers are the same."

Pre-tax profits were up 16 per cent to 1.5m in the six months to September 30, on revenues 16 per cent higher at 32.3m.

Previous estimates for the full year had been around 4.5m, but it is now expected the firm will report profits closer to 6m.

Mulberry has benefited from easier trading comparisons this year, while the UK has also seen an influx of overseas shoppers taking advantage of the weakness of the pound.

The firm's bags hit the headlines in October when the England World Cup 2018 bid team was criticised for sending them as gifts for the wives of the 24 members on football authority Fifa's executive committee.