Shares in luxury handbag maker Mulberry (LON:MUL) sunk on Wednesday, despite seeing 21 percent boost to profits as foreign customers took advantage of the weak pound.
Total revenue rose 8 percent to £168.1 million in the year to the end of March, up from £155.9 million in 2015, with profit before tax rising to £7.5 million.
Sales were boosted by the release of the Zipped Bayswater bag, which became an instant best seller after its launch in October 2016, as well as increase tourist spending in London as foreign customers look to take advantage of the weak pound.
Chief executive Thierry Andreatta said the company made “good progress” during the year, seeing growth in both sales and profits.
“We have advanced our international growth strategy with a new partnership in Asia and the continued expansion of our omni-channel offer in key markets.
“We have generated strong creative momentum with new products that are well received by our existing and new customers.
“Looking ahead, we will continue to invest in advancing our international development and increasing Mulberry’s relevance to our customers’ rapidly evolving lifestyle,” he concluded.
Mulberry, who have over 60 stories across the world, announced a deal to grow its presence in Asia in 2016, alongside with its majority shareholder Challice.
Investors were less impressed with Mulberry’s results, with shares currently trading down 2.61 percent at 1,1129.00 (1040GMT).