British luxury brand Mulberry will have to find a new CEO, as Bruno Guillon has handed in his resignation. He has led the company for two years, through a very tumultuous time, but it is unclear why he has immediately resigned now.
“It was now time to part company”
The board accepted the resignation without any protest. “The board agreed that it was now time to part company”, a source told Reuters. Godfrey Davis, currently chairman and a former CFO and CEO in his 27-year career with the company, will take the reins of CEO temporarily, until a successor is found.
Guillon moved Mulberry in the higher segment of the market, after several years as “affordable luxury”. Prices were increased and Mulberry shifted focus to the Asian market, adding new stores in tourist areas.
It had to send out a profit warning in January, its third in a space of less than 18 months. Main concerns were weak South Korean demand and large price drops during the holidays in Great Britain, which is Mulberry’s biggest market.
Shares dropped 25 % after the warning, a drop it still has not recovered from as shareholders fail to see any changes on the horizon.