Times are a little tough for British brand Mulberry. The label, known primarily for its leather goods, has seen lackluster sales this year and issued a profit warning in January -- its third in 18 months. Its former creative director, Emma Hill, stepped down suddenly in June after six years at the label, and Mulberry has yet to find a replacement, causing it to sit out of its usual London Fashion Week runway show in February. And now, Mulberry's CEO of two years, Bruno Guillon, has resigned his position at the brand, effective immediately.
WWD reports that Mulberry Group announced Guillon's departure on Thursday morning, and that Godfrey Davis, the group's non-executive chairman and former CEO, will step in until the brand finds a successor. Guillon, who joined the company from Hermès in 2012, has tried to bring Mulberry more upmarket, but the higher prices have hindered the label's sales. In the time since Guillon has joined the company, Mulberry has lost two-thirds of its market value, Bloomberg notes.
The move into higher prices was reportedly the main reason for Hill's departure last year. Hill, who was the mastermind behind the best-selling "Alexa" bag and later the "Del Rey" bag, purposely priced the goods at an "affordable luxury" price point, but the prices have gone up by hundreds of pounds since Guillon became CEO.
Instead of a runway show for fall 2014, Mulberry opted for a live-streamed presentation to debut a new handbag called "The Cara" (named after Mulberry face Cara Delevingne), but the brand's attempt to bank on another "It" girl might be too little, too late.
We've reached out to Mulberry for comment and will update as we hear more.