Mulberry's CEO steps down

British luxury fashion group Mulberry announced on Thursday the resignation of its Chief Executive Officer Bruno Guillon, effective immediately. Godfrey Davies, who is currently non-executive chairman and previous CEO is to take his place on an provisional basis until a successor is found.

Guillon first joined Mulberry from Hermès International two years ago, in 2012. However, his time at the helm of the company has been marked with a number of profit warnings, with the most recent occurring early January this year due to "fierce competition", and the departure of Mulberry's creative director, Emma Hill.

Guillon to leave Mulberry with immediate effect

His plan to transform Mulberry from a "British success story into global success story", seems to have fallen short, as wholesale order cancellations from Korea, which account for 20 percent of its wholesale business, combined with weak sales in its home market lead the company issuing a lower full year profit warning early this year. Mulberry reported that total retail sales for the 17 weeks to January 25 were 3 percent below a year ago and analysts expect Mulberry to post a pre-tax profit of 26.9 million pounds for the full year to the end of March, according to data from Reuters.

The luxury company has also been without a creative director for nearly a year and canceled its fall fashion week show. Some insiders suggest that Hill left the company after having a disagreement with Guillon concerning Mulberry. During the recent London Fashion Week, Mulberry hosted a presentation of its new bag, designed by model Cara Delevingne instead of a fashion show.

In a press statement released Thursday morning, Davies commented on Guillon resignation, saying: "I, along with the Board, would like to thank Bruno for his hard work over the past two years. He has helped improve the quality of the Mulberry offering and enabled the company to increase its international appeal and grown international retail sales. I am confident that Mulberry has the heritage, brand appeal and products to build on what has been achieved."

Photos: Mulberry CEO Bruno Guillon for National Post, Cara Delevingne for Mulberry SS 2014 Campaign by Tim Walker